Will the Bank of Canada increase rates?
With a Bank of Canada interest rate announcement coming in the next few weeks there has been speculations as to whether the bank will indeed increase the rates on July 11th.
With a Bank of Canada interest rate announcement coming in the next few weeks there has been speculations as to whether the bank will indeed increase the rates on July 11th. Bank of Canada Governor Stephen Poloz has stated that he does expect to continue increasing the interest rate as inflation has already hit the 2% target and the economy is operating very close to capacity, although he did not clearly state when the next increase will occur.
“We’ve said clearly that, given where the economy is, we’re in a situation where the economy will warrant higher interest rates," Poloz said at the press conference. “We’ll ensure that that is a gradual process because there are certain issues that we must monitor along the way, and we’ve laid those out.”
In terms of the trade uncertainty and the tariffs imposed by the U.S. Poloz notes that the bank is focused on the analysis of data and not assumptions of political developments.