Bank of Canada expected to raise rates again this week, vying to quash inflation faster

“I do think that we are seeing things shift. Are they shifting fast enough for the Bank of Canada? Perhaps not,” Desjardins said.

Economists reacting to the latest jobs report for June said the details paint a mixed picture. The economy added 60,000 jobs last month, suggesting employers’ hiring appetite persists. Meanwhile, the unemployment rate climbed higher to 5.4 per cent as more people looked for work and the country’s population continued to grow.Article content

But with the unemployment rate still below pre-pandemic levels, Desjardins’ senior director of Canadian economics suggests the labour market is still tight. Economists were widely anticipating a recession to hit as early as late 2022. Instead, the economy has continued to expand, despite interest rates being at their highest levels in decades.“I think the bank is really laying the groundwork to sustainably start bringing inflation back towards two per cent,” he said.

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