Bank of Canada Governor Stephen Poloz heads into a rate decision Wednesday where he’s expected to once again refrain from lifting borrowing costs, even as the economy shows signs of strength and is running up against capacity constraints, Bloomberg reported. It’s a cautious stance driven by a wait-and-see approach to a long list of uncertainties—everything from NAFTA to the housing market—rather than any concerns about fundamental economic momentum. After the current pause, which came after three rate increases, most economists are expecting the Bank of Canada will return to a hiking path in July, followed by one more increase at the end of the year. “It’s all about the timing,” said Jean-Francois Perrault, chief economist at Bank of Nova Scotia in Toronto and a former central bank researcher. “From our perspective, rates are going up there’s no question about it, but it’s just when will they go up.” As of late Friday, 21 of 24 economists predict Poloz will hold rates steady, with the rest calling for a quarter-point increase.
