www.bloomberg.com
Canada’s robust labor market performance has shifted market expectations, with many now anticipating the Bank of Canada (BoC) will raise interest rates in the coming year. This confidence stems from the strong job numbers, suggesting the Canadian economy may not require further monetary easing. Even with the ongoing threat of US tariffs, the BoC seems poised to prioritize managing domestic economic strength over preemptively countering potential trade impacts, indicating a growing divergence from its previous dovish stance. This marks a significant shift in market sentiment regarding the BoC’s future policy direction.
