Bank of Canada Likely to Raise Rates, Even if Nafta Talks Collapse

By Anonymous

Central bank official says trade protectionism would weigh on growth but push up inflation, creating trade-offs

OTTAWA—A breakdown in talks toward a revised North American Free Trade Agreement wouldn’t necessarily prevent the Bank of Canada from raising interest rates, a senior official from the central bank said Thursday.

The Canadian dollar strengthened against the U.S. dollar shortly after the remarks were released, in a sign traders believe another rate increase, as soon as October, is in the offing.