Several economists think today’s inflation report will likely keep the Bank of Canada on a path of cautiously hiking its key interest rate.

The inflation rate rose from 2.2 per cent in May – to 2.5 per cent in June.

T-D Bank senior economist James Marple says that should give the Canadian central bank confidence to keep slowly edging up rates.

C-I-B-C’s Royce Mendes and Katherine Judge also say the likelihood of another interest rate hike this year has increased.

But all three say deepening uncertainty around trade risks – could still prompt bank governor Stephen Poloz to keep rates on hold for the rest of 2018.