NAFTA deal wouldn't lead to higher interest rates

The US administration appears to be pushing hard to get a deal done on NAFTA, reigniting speculation of further interest rate increases from the Bank of Canada. Even if a trade deal is done, however, we doubt that the Bank would risk raising rates again this year. Trade competitiveness challenges remain a major obstacle to economic growth. And we still fear that the worst effects from the housing downturn, triggered by past interest rate hikes and tougher mortgage rules, lie ahead.