The Bank of Canada raised its benchmark interest rate by 25 basis points to 1.25 percent Wednesday, pointing to sustained growth in the G7 economy and inflation that is closer to the country's target. The central bank explained in a statement that while the Canadian economy was going strong, with jobs on the rise and inflation in check, "uncertainty about the future of NAFTA is weighing increasingly on the outlook." Canada, the United States and Mexico are in talks to possibly revamp the North American Free Trade Agreement, which US President Donald Trump has threatened to leave.
The next round is to take place in a week in Montreal.