Canadian Economy
Article from SFO Magazine on the Canadian economy, courtesy of Bruno Petit from Belgium (our valued member).
Canada Data Reduce Chances Of Rate Cut -- November 03, 2006
After a tepid summer, Canada's job market showed signs of heating up again in October, a development likely to advance the impression of continued policy tightening at the Bank of Canada, and further invalidate any notions that the central bank is preparing a move toward easier policy settings.
Statistics Canada said that employment rebounded with a 50,500 gain in October, building on the previous month's 16,200 increase which, in turn, had followed three months of net job losses.
October's gains helped push the nation's unemployment rate down from September's 6.4% to 6.2% in October, just a shade higher than the three-decade low of 6.1% reached earlier this year.
Consensus expectations had called for the creation of about 18,000 new Canadian jobs in October, with the unemployment rate remaining at 6.4%.
Beyond the headline numbers, details of the October report were also uniformly solid, with full-time employment accounting for all of the gains, and private-sector job gains taking the lead over the public sector.
According to most analysts, October's employment figures are the latest evidence pointing to rebounding Canadian economic growth in the last quarter of 2006, following a disappointing July-September period.
That's an evolution also expected to reduce pressure on the Bank of Canada to move to a more accommodative monetary policy bias, and to back the impression of a prolonged period of stand-pat policy from the central bank, suggested in its recently released Monetary Policy Report from mid-October.
"This basically ices the idea that the Bank of Canada can ease rates anytime soon," said Marc Levesque, chief strategist for North American foreign exchange and fixed income at TD Securities in Toronto. "There's absolutely nothing in this report to convince the Bank of Canada that they need to start cutting rates."
Canada Data Reduce Chances Of Rate Cut -- November 03, 2006
After a tepid summer, Canada's job market showed signs of heating up again in October, a development likely to advance the impression of continued policy tightening at the Bank of Canada, and further invalidate any notions that the central bank is preparing a move toward easier policy settings.
Statistics Canada said that employment rebounded with a 50,500 gain in October, building on the previous month's 16,200 increase which, in turn, had followed three months of net job losses.
October's gains helped push the nation's unemployment rate down from September's 6.4% to 6.2% in October, just a shade higher than the three-decade low of 6.1% reached earlier this year.
Consensus expectations had called for the creation of about 18,000 new Canadian jobs in October, with the unemployment rate remaining at 6.4%.
Beyond the headline numbers, details of the October report were also uniformly solid, with full-time employment accounting for all of the gains, and private-sector job gains taking the lead over the public sector.
According to most analysts, October's employment figures are the latest evidence pointing to rebounding Canadian economic growth in the last quarter of 2006, following a disappointing July-September period.
That's an evolution also expected to reduce pressure on the Bank of Canada to move to a more accommodative monetary policy bias, and to back the impression of a prolonged period of stand-pat policy from the central bank, suggested in its recently released Monetary Policy Report from mid-October.
"This basically ices the idea that the Bank of Canada can ease rates anytime soon," said Marc Levesque, chief strategist for North American foreign exchange and fixed income at TD Securities in Toronto. "There's absolutely nothing in this report to convince the Bank of Canada that they need to start cutting rates."
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