Trade dispute to figure prominently in central bank’s rate decision: Poloz
Projections will include fallout from US steel and aluminum tariffs as well as retaliatory measures by Canada and others.
bank of canada
In prepared remarks of a speech today in Victoria, Poloz says the bank is incorporating into its projections the fallout of US steel and aluminum tariffs as well as retaliatory measures by Canada and others.
The Trump administration announced it would slap punitive tariffs on Canada and other allies on May 31 – a day after Poloz made his last interest-rate announcement.
Before US President Donald Trump imposed the tariffs, experts had widely predicted Poloz to raise his trend-setting rate at the upcoming July 11 policy meeting.
But there have been growing doubts Poloz will hike at next month’s meeting because of concerns about the deterioration of the US trading relationships with Canada and other key economies around the world.
Ahead of July’s rate announcement, Poloz says the bank’s ongoing analysis of how new lending rules are affecting the housing market and mortgage renewals – at an individual level – will also be central in the decision-making process.