Canada adds just 100 jobs in December — what does this mean for interest rates this year?

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The Bank of Canada considers several economic factors each month as it decides on what to do with the overnight rate. The overnight rate has risen from 0.5% in March of 2022 to 5% by mid-2023, however the BoC has held firm on the rate for a few months now.

Expectations are for a decrease (or three) in ’24, but that’s far from certain, and the Consumer Price Index (CPI), wage trends, housing, and employment numbers all factor in to the decision.

The latest jobs numbers for Canada were released January 5, and the economy added a net of 100 — yes, one hundred — for the month. Canada also added over 70,000 people…what does this all mean for spending, inflation, and ultimately, interest rates?

Check out this quick-hit from RFD-TV’s Market Day Report, where Shaun Haney discusses some of the potential impacts of weak jobs numbers and compares them to the U.S.:

 

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