CIBC: Canadian Job Numbers Provide Justification for Bank of Canada to Consider Future Rate Hikes

The Canadian economy has been performing well in recent months, and this is especially true when it comes to job numbers. According to the latest report from Statistics Canada, employment rose by an impressive 88,000 jobs in October, the largest increase since March 2012. This is great news for the Canadian economy, and it provides justification for the Bank of Canada to consider future rate hikes.

The Bank of Canada has kept its key interest rate at 1.75% since October 2018, and it has been reluctant to raise rates due to concerns about the global economy. However, the strong job numbers suggest that the Canadian economy is in a good place and that it can handle a rate hike.

CIBC economists have noted that the job numbers are particularly impressive given that they come on the heels of a period of economic uncertainty due to the US-China trade war and the recent oil price slump. They also point out that the job gains were fairly broad-based across all sectors, with the biggest increases coming in professional, scientific and technical services, as well as finance, insurance, real estate and leasing.

The strong job numbers are also good news for Canadian households, as they will likely lead to higher wages and increased consumer spending. This could help boost economic growth and provide further justification for the Bank of Canada to consider raising rates.

Overall, the latest job numbers from Statistics Canada provide strong justification for the Bank of Canada to consider raising rates in the near future. The strong job gains suggest that the Canadian economy is in a good place and can handle a rate hike, which could help boost economic growth and benefit Canadian households.

• SEO Powered Content & PR Distribution. Get Amplified Today.
• Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
• Source: Plato Data Intelligence: PlatoAiStream