The economy’s impressive run has prompted another interest-rate hike from the Bank of Canada — but looking ahead it warned of the broadening negative impact of NAFTA’s uncertain future.
The central bank pointed to unexpectedly solid economic numbers as key drivers behind its decision Wednesday to hike the trend-setting rate to 1.25 per cent, up from one per cent. It was the bank’s third increase since last summer, following hikes in July and September.
While the central bank signalled more rate increases are likely over time, it highlighted the growing, negative impacts related to the unknown outcome of the renegotiation of the North American Free Trade Agreement.
The bank not only made a point of emphasizing the potential negative effects on trade, but also the impacts on business investment in Canada.
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