Reuters poll: Cautious on trade and debt, Bank of Canada likely to

— The Bank of Canada will probably hold interest rates steady on May 30 as uncertain trade policy and indebted consumers necessitate caution, but firmer price and wage inflation will prompt two increases in the second half of 2018, a Reuters poll predicted

— REUTERS/Chris Wattie The central bank has raised rates three times since July 2017, but took no action at its last two meetings, because it believes the economy has more room to run in the short-term without stoking more inflation

— The central bank will want to see signs of better momentum before raising rates again, economists said

— The majority of economists say the Bank will next raise rates in the third quarter, with many specifying the July meeting, when it will also release updated economic forecasts

— Still, economists acknowledged there was an argument to be made for the central bank raising rates again this month, particularly with an increase in the price of oil and domestic inflation sitting just above the bank’s two percent target