Canada: Labour Market Again Defies the Gravity of Higher Rates

Net total Canadian employment rose by 35k in March, and momentum in full-time hiring, hours worked, and wage growth persisted. We still think the Bank of Canada is most likely to continue to hold rates steady at next week’s meeting as it waits for the delayed effects of already completed hikes to arrive. But after today’s report, we suspect that policymakers will keep the door open for more hikes down the road.