There’s still a significant degree of uncertainty around the future trade regime.
its positive outlook, in general.
Lane’s appearance at the Greater Vancouver Board of Trade came shortly after Canada learned it was getting relief from U.S. penalties on steel and aluminum for an undetermined period. Canada is one of only two countries getting a provisional exemption from heavy tariffs that are aimed at the rest of the world.
The prospect of tariffs, and the possibility they could cause a global trade war, have added to an already murky context for Canada that includes worries over NAFTA’S renegotiation and fears over competitiveness, following corporate tax cuts in the U.S.
“I would say there’s still a significant degree of uncertainty around the future trade regime,” Lane said. But Lane noted that the presence of considerable trade uncertainty didn’t prevent the bank from raising the rate in January. He said the central bank is dealing with a situation where it doesn’t know when the NAFTA talks or other trade disputes will be concluded, nor does it know how governments or industries will react.