The Globe and Mail reports in its Thursday edition that trade uncertainty and reduced immigration may limit the Bank of Canada's benchmark interest rate increase next year, says a recent Capital Economics report. A Canadian Press dispatch to The Globe reports that the report says risks to Canada's growth will likely reduce inflationary pressures, minimizing the extent of necessary monetary policy tightening. The BOC has kept its benchmark interest rate at 2.25 per cent since last October while assessing the impacts of the U.S. trade dispute and the war in Iran. The BOC will issue updated forecasts for the economy and inflation at its next interest rate decision on Oct. 28. Financial markets are now favouring quicker rate hikes due to high oil prices raising inflation concerns. The BOC, however, hasn't seen widespread impacts from rising gas prices on the consumer basket but is ready to raise rates if inflation spreads. Capital Economics forecasts the BOC will raise rates to 2.75 per cent with a pair of quarter-point hikes starting next year. That would bring the policy rate to the middle of what the BOC considers its neutral range, the point at which borrowing costs are neither stimulating nor suppressing growth.