Interest rates in Canada are mostly tied to the movements in the Fed funds rate in America they normally move in tandem 85 percent of the time. Before Stephen Poloz was in power Canadian interest rates were always higher than American interest rates to protect the value of the Canadian dollar.

Exactly, job numbers are nothing more than a readjustment. I also think people getting off unemployment checks to paychecks is a good thing. Most of the inflation is caused by external factors, not a hot economy. Food costs won’t go down by raising interest rates, probably cause them to go up because food producers will see increase in their costs. Carbon tax is one sure cause of increased cost to produce and bring goods to the market. Increaseing interest rates won’t change that either. High interest rates cause housing costs to soar, so actually increasing inflation. The BOC needs to be more creative than just jacking up rates. It’s using a sledge hammer to drive a tack, reducing inflation by destroying the economy.

Hello Mark,
No matter if these jobs are low or highly paid, people need to spend money for living and, this will increase money in circulation: this firing up inflation.
That’s what the Central Bank doesn’t want.

I agree with you. This statistical datas are designed for whom? Should it be the basis to decide the bank rates? The wages are super low to meet day to day needs. Taxes are going up. Food cost, housing cost and many other segments are going up though bank rates going up. Everything is out of control means the strategy is not working. Creating more economic slavery?

Um obviously inflation at record highs…