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According to a recently conducted Reuters poll, the Bank of Canada is expected hike its policy rate on July 11 as the rising inflation counters concerns regarding Trump administration’s trade policy.

“The July decision is about rising trade tensions versus strong domestic momentum. If the BoC continues with its current approach of assuming that current trade arrangements will be maintained, the threat of auto tariffs and further trade tensions between the U.S. and China are unlikely to play a major role in the July 11th decision,” Sebastien Lavoie, chief economist at Laurentian Bank, told Reuters.

“While Canada’s dollar is expected to climb over the coming year, currency strategists in a separate Reuters poll were less bullish than they were a month ago as escalating trade uncertainty competes with expected Bank of Canada interest rate hikes,” Reuters reported.