Statistics Canada announced Friday morning in its monthly Labour Force Survey that Canada’s economy added 22,000 jobs in February. Most economists had been expecting a much bigger slowdown after two straight months of large gains.
“While somewhat dull in comparison to the blowout in the prior month … this result is far too strong for the BoC’s comfort,” Porter wrote. “The economy is likely just one wrong turn on the inflation front away from the bank flipping back into rate-hiking mode.”“For the Bank of Canada, the headline … might be more ‘normal’ compared to prior months, but it is still too high,” Orlando wrote.
Earlier this week, the Bank of Canada cited strong job growth and rising wages as reasons it was still considering raising interest rates, after having left its key overnight rate at 4.5 per cent. “Since interest rates started rising last year, Canada has had the sharpest growth of gross domestic product in the G7. Our labour market also remains strong. While positive, these developments risk putting extra pressure on inflation going forward, especially since Canada’s productivity growth remains low,” Rogers said.
Pedro Antunes, chief economist at the Conference Board of Canada, said it’s “a bizarro world” when good job numbers are seen as bad news, but said that’s how the bank is likely thinking right now. Raising interest rates and talking tough are the only real levers it has to fight inflation, Antunes said.
ThanksTrudeau
Our economy is tanking. Have you seen the dollar ? US is crushing us, and woke socialist politics are to blame.