The effects of tariffs and more stringent mortgage rules will be prominently featured in the Bank of Canada's interest rate decision in July, but Bank of Canada Governor Stephen Poloz kept markets in doubt as to whether the rate would be raised or not.
With a dovish speech and a more hawkish press conference, Poloz pushed the Canadian dollar to its lowest level in a year before recovering, as he kept the door open for rate hike at July meeting.
The US-Canada trade war affects business investment, but the local economy is close to full capacity and inflation on the target and economic data will decide the next step in the interest, Poloz said.
The Bank of Canada has raised interest rates three times since July 2017.
