Govoner of the Bank Of canada Stephen Poloz

For the fifth time since the middle of 2017 the Bank of Canada has increase interest rates to 1.75% and has signaled that more increases are to be expected.

The bank has said that since the Unites States, Mexico and Canada Agreement (USMA) has now been negotiated, the expectation is that trade uncertainty will be reduced. The noted though that they still have some concerns about the US-China tensions.

They also noted that the concerns from household debt is abating as there is evidence that Canadian households are adjusting to higher borrowing cost.

To this end the Bank has said that under the current market conditions they expect rates to gradually increase to between 2.5% and 3.5% over the next year.

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