The head of the Bank of Canada suggests recent trade events will have a bearing on future interest rate adjustments.
Stephen Poloz says impacts of both the escalating cross-border trade fight and new mortgage rules will ``figure prominently'' for the bank.
Poloz told the Greater Victoria Chamber of Commerce that the central bank has been incorporating into its projections the fallout of U-S steel and aluminium tariffs as well as retaliatory measures by Canada and others.
In the lead-up to his July 11th rate announcement, Poloz says the bank has also kept its focus on incoming, individual-level data that shows the effects of Canada's new lending rules on the housing market and mortgage renewals.
His next rate decision will arrive in the middle of an unlikely trade dispute between next-door neighbours that's expected to hurt both economies.
The Trump administration announced it would slap punitive tariffs on Canada and other allies on May 31 -- a day after Poloz made his last interest-rate announcement.
Poloz has kept the benchmark rate at 1.25 per cent since January.