However Poloz said the bank can not make policy on the basis of hypothetical scenarios.
The Credit Counselling Society's president and CEO says a rate hike is positive for those with funds in a savings account, particularly seniors who depend on interest income to help cover their expenses.
The bank said USA steel and aluminum tariffs imposed in June and retaliatory countermeasures by Canada in July would trim exports, imports and economic growth, and boost inflation, but strong global demand and higher commodity prices were offsetting the tariff headwind.
With the economy operating close to full capacity, waiting too long to start raising the benchmark runs the risk the central bank would have to introduce increases more aggressively, Caranci said.
Poloz also argued it should be clear that interest rate adjustments are "ill-suited" to counteract all the effects of protectionist measures, given how these trade actions affect multiple areas of the economy.
Aside from the US trade threat, there isn't much to keep the Bank of Canada on hold, added Brett House, deputy chief economist for Scotiabank Economics.
It was reasonable to think at the beginning of the year that the unknowns surrounding NAFTA talks could pause business investment and lead to a decline in activity, he said.
In a statement, the BOC said it expects the global economy to grow by about 3.75% this year, and by and 3.5% next year.
TD senior economist Brian DePratto wrote in a note to clients Wednesday that the messaging is consistent with a central bank that's "committed to a rate hike cycle, but leaves sufficient room to adjust to evolving events".
The bank, however, noted in its report that despite "healthy" labour market conditions, employment growth and average hours worked have slowed down compared to last year's surge.
Scott Hannah says higher interest rates have also helped to cool down the country's real estate markets, helping future homeowners.
Consumer price inflation is expected to edge up to 2.5 per cent before returning to around 2 per cent by the second half of 2019.