Although the Canadian economy added more jobs than predicted in August, most economists believe the Bank of Canada is done hiking interest rates because overall economic trends point to a decline.
According to Statistics Canada, the economy added 40,000 jobs last month, which was more than double the economists’ consensus estimate.
The job gain was barely enough to keep the unemployment rate at 5.5 percent, breaking a three-month streak of growing unemployment.
“Canada’s job market has been following a sawtooth pattern this year, with a soft report generally followed by a snapback, and this month was the month for a minor snapback,” BMO chief economist Douglas Porter wrote in a client note.
The good job report raises financial markets’ anticipation for rate reduction.
