Statistics Canada reported this morning that more than 93,200 jobs were created in the Canadian economy in June. This far surpasses the estimate of 15,000 new jobs. The result brought Canada’s national unemployment level down to 7.9 percent from 8.1 percent and has caused some analysts to suggest another interest rate increase is just around the corner.
“I think it just reinforces our call that they are going to go 25 basis points,” said Benjamin Reitzes, economist at BMO Capital Markets. “While the GDP numbers for April weren’t that great, the ongoing strong job numbers just give you more encouragement that the ongoing Canadian growth remains solid, and I guess that means that extremely low rates aren’t necessary as maybe they were a year ago,” he said.
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