With September employment figures released by Statistics Canada coming out weaker than expected, there is growing speculation that the Bank of Canada will keep its benchmark interest rate unchanged at its meeting on October 28. - Jobs fell by 68,000 in September, and the unemployment rate rose from 6.41 to 6.51. The market expectation was an increase of 9,200 jobs.
Public sector jobs decreased by 70,000, with education services accounting for 35,000 of those. Manufacturing also saw a decrease of 13,000 jobs.
The current base rate is 2.251 TP3T. It was reported that immediately after the employment announcement, the likelihood of a hike in October dropped from approximately 401 TP3T to approximately 251 TP3T.
Economists at major banks such as TD, BMO, and CIBC generally expect a freeze in October, but they suggest that the decision in December remains to be seen due to inflation risks stemming from energy and food prices. If you have a variable-rate mortgage or are about to renew your loan, please check the announcement on October 28 and carefully compare your fixed and variable options based on your repayment plan. Source: Wealth Professional
https://www.wealthprofessional.ca/news/industry-news/job-losses-push-october-bank-of-canada-hike-odds-down-to-25/393757 |
