e cracks appeared within the Canadian labour market in May, but these “may not yet be wide enough to convince the Bank of Canada that inflation is about to meaningfully cool off.”“The weaker-than-expected headline figure may have been exaggerated by youth employment, which can be volatile at this time of year. As such, we stillone more 25bp hike from the Bank of Canada by the September meeting.
“Bond yields and the Canadian dollar weakened on the news that employment fell in May. However, the moves were fairly small in comparison to the gains seen after the Bank of Canada decision on Wednesday, and markets are still fully pricing in one more 25bp interest rate hike by September.”Information on these pages contains forward-looking statements that involve risks and uncertainties.
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