0850 ET - The escalation in US-Canada trade tensions will weigh heavily on Bank of Canada officials when they release the latest rate-policy decision on Wednesday, says Dominique Lapointe, Manulife Wealth & Asset Management's senior director of macro strategy. Yet, trade won't drive BOC decision making because the crossborder trade backdrop could still change, Lapointe tells WSJ. Washington has imposed 50% tariffs on certain goods, Canada will impose retaliatory duties next week, and President Trump has threatened 50% levies on Canada autos and auto parts on Jan. 1. The BOC "cannot know what its next move will be in the current context. It will continue to focus on the data at hand and wait for further clarity before trade tensions impact their guidance," Lapointe says.
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