Hold-ups for the BoC are trade related - ING

Analysts at ING explained that the current hold-ups for the BoC are trade related. 

Key Quotes:

"NAFTA and the threat of US tariffs on steel and aluminium have forced the Bank to pause and wait for a more secure economic environment before continuing their hiking schedule, these also being reasons for the CAD’s recent underperformance against its peers.

Nonetheless, there have been rumours of a potential NAFTA breakthrough with the US apparently making key concessions on content rules on cars, a possible sign that the deadlock in negotiations is beginning to thaw, but it is still early days and time will tell whether this is the case. 

Given the NAFTA storm does blow over we expect the Bank’s tightening cycle to continue in the second half of this year."