The Bank of Canada is widely expected to keep its benchmark interest rate on hold at a policy announcement Wednesday, in part to allow more time to see how last-ditch efforts to include Canada in a new Nafta unfold.
The Bank of Canada on Wednesday raised its benchmark interest rate by a quarter of a percentage point to 1.50% in response to solid economic data and expectations that exports and business investment will continue to grow.
The Canadian dollar’s upside is capped by trade-war fears while downside is limited by expectations for an imminent interest-rate increase by the country’s central bank. So what will it take to break the loonie out of its range?
Bank of Canada Governor Stephen Poloz is under pressure to justify another rate hike or risk credibility by changing course, with a clear-cut case for higher rates endangered by a raging trade war with the United States.