Economics

Poloz Flags Growing Trade Risks With Canadian Rates Firmly on Hold

  • Path to full capacity is being slowed by U.S.-China conflict
  • Bank of Canada remains an outlier in not talking about cuts
Stephen Poloz speaks during a press conference at the Bank of Canada on July 10, 2019.Photographer: David Kawai/Bloomberg
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Bank of Canada officials flagged elevated concerns about mounting global trade tensions, even as they left interest rates unchanged for a sixth straight decision and showed little willingness to consider easing policy any time soon.

In a decision Wednesday, policy makers reiterated the current policy rate -- at 1.75% -- remains “appropriate.” They painted a picture of an improving Canadian economy, but one whose path back to full capacity is being slowed by an escalating trade conflict.