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Canada jobs data bolster view BoC should not rush rate hikes
National Bank of Canada economists cite July employment gains of 75.1K jobs, with easing wage pressures despite ongoing excess labour supply and temporary hiring factors.
FXStreet highlights an outlook from National Bank of Canada economists Matthieu Arseneau and Alexandra Ducharme, who point to robust Canadian labor market data for July as support for a cautious approach by the Bank of Canada.
They note that the report showed 75.1K jobs added, a lower unemployment rate, and stronger private sector hiring, including a 58K private-sector job gain and a 0.6% rise in hours worked.
The economists argue that while the economy has maintained solid momentum into the third quarter, wage pressures remain contained because the labor market has been in excess supply for some time.
They also say the central bank should not rush to raise rates, citing that July’s strength was partly supported by temporary factors, including the census and a tourism boom after the FIFA World Cup.