Bank of Canada (BoC) Deputy Governor Timothy Lane said earlier today there are still a significant degree of uncertainty around the trade situation. While news on steel has changed a lot in the last few days, it’s still a fluid situation, not a situation of calling all clear. And even though BoC doesn’t need to stay on hold until there is more clarity, the lack of clarity has dampening effect on outlook.
Lane also noted that during rate decision discussion, trade uncertainty is definitely a risk to outlook, but that’s just one of a number of factors. And for BoC, one of the reasons to be on hold is that policymakers are very cautious to make sure there is adequate taking stock of what rates are doing to households.
