6 November 2018

In his opinion, the risks of international trade actions (real and threatened) have attracted investors’ attention. However, those risks have two sides, and their solutions can lead to fresh economic gains.

“It’s what we’ve already seen in Canada, when concerns about NAFTA were replaced by relief after the agreement between the United States, Mexico, and Canada was reached,” – he added.

Poloz believes that Canada’s forecasts for economic growth and inflation mean the rates will keep growing. The BoC raises its rate in order to keep the inflation from excessive growth.

The Bank of Canada, according to the governor, will determine the pace of rate hikes, based on how the national economy adjusts to previous increases, given the high levels of household debt.

In addition to it, the Bank will also watch all the new developments in international trade closely.