Bank of Canada says labour market can weather a slump without a jobless surge

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OTTAWA — Canada’s red\u002Dhot labor market can weather an economic slump without seeing a major surge in unemployment, Bank of Canada Governor Tiff Macklem said on…

Inflation has eased to 6.9% from a peak of 8.1%, but it is still far above the central bank’s 2% target and underlying price pressures remain broad-based. The central bank forecasts growth will stall through the middle of next year.Sign up to receive daily headline news from the Calgary Herald, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

Since hitting a record low of 4.9% in June, the unemployment rate has crept up and was 5.2% in October, but the labor market remains “unsustainably tight,” Macklem said. “The budgetary forecasts, spending decisions embedded in the fall economic statement would not be … of macro economic significance” with respect to the growth and inflation forecasts it made in October, Macklem said.Article content

 

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Yes you also said we would be at close to 2% inflation range by end of 2022. So excuse me if I don’t get excited about your forecast here.

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