nt Rate to tick higher to 5.1% in May from 5% in April. Net Change in Employment, which rose by 41,400 in April, isThe Bank of Canada unexpectedly announced earlier in the week that it raised its policy rate by 25 basis points to 4.75% after having left it unchanged at 4.5% in March and April. Upcoming labor market data could influence the Canadian Dollar’s performance against its rivals.
Unless there is a noticeable cooldown in the jobs market, the BoC should continue to stay focused on taming inflation, which could translate into one more rate increase in July. In a recently published note to investors, Citigroup economists said that they are now anticipating the BoC to hike the key rate to 5% at the next policy meeting. In April, annual wage inflation stood at 5.2%.