March 10, 2023 17:11 GMT
Local Analysts On Employment Report
Local analysts note stronger employment report. They don’t change their rate calls but see differing degrees of risk of re-starting hikes.
- BMO: In isolation there is nothing particularly remarkable about today's jobs report, besides perhaps the snapback in wages. But arriving on the heels of the January jobs jamboree, this result is far too strong for the BoC's comfort. We won't adjust our rate call just yet, but the economy is likely just one wrong turn on the inflation front away from the Bank flipping back into rate-hiking mode.
- CIBC: The still historically low u/e rate and strong wage growth will keep the BoC leaning towards future rate hikes, although we still don't think the data will be strong enough for them to actually move again.
- RBC: Further stronger-than-expected economic data could still push the central bank to re-start hikes, but we still expect the economy will slow more meaningfully going forward and for the BoC to remain in wait-and-see mode for now.
- TD: Given that the BoC is in wait-and-see mode with its conditional pause, it believes that it is only a matter of time before a slowdown shows up in the broader economy. But with today's labour report, it will have to wait a little while longer.