Tight labour market means BoC will likely keep hiking rates

Vancouver, Toronto, Calgary

2022/12/06

The tight labour market means the BoC will need to stay “vigilant” with its interest rate hikes in order to rein in inflation.The 5.1% unemployment rate could contribute to inflation risk as employers offer higher pay to retain and attract talent.Bank of Canada can still tame inflation, but it will mean another sharp central interest rate increase.