Trade War Dims Hopes for Canadian Rate Hike

The likelihood of a Bank of Canada rate hike is dwindling due to escalating US-Canada trade tensions.

Ottawa unveiled retaliatory tariffs on over $27 billion worth of US products, and Donald Trump mused about renaming Lake Ontario as 'Lake America.'

Charles St-Arnaud, chief economist at Servus Credit Union, believes the odds of a rate hike are low until spring next year.

'What [the trade war] really creates is that the probability of a hike… is very low,' he said.