Bank of Canada to hike rates in July, despite trade woes - Reuters Poll

According to a recently conducted Reuters poll, the Bank of Canada is expected hike its policy rate on July 11 as the rising inflation counters concerns regarding Trump administration's trade policy.

"The July decision is about rising trade tensions versus strong domestic momentum. If the BoC continues with its current approach of assuming that current trade arrangements will be maintained, the threat of auto tariffs and further trade tensions between the U.S. and China are unlikely to play a major role in the July 11th decision," Sebastien Lavoie, chief economist at Laurentian Bank, told Reuters.

"While Canada's dollar is expected to climb over the coming year, currency strategists in a separate Reuters poll were less bullish than they were a month ago as escalating trade uncertainty competes with expected Bank of Canada interest rate hikes," Reuters reported.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.