Inflation & Prices
Jobs Blowout Makes Next Inflation Data Crucial for Canada Rates Picture
- April employment blew past expectations with 90,000 new jobs
- June cut will require ‘seriously cool core CPI’: BMO’s Porter
Tiff Macklem, governor of the Bank of Canada.
Photographer: David Kawai/BloombergThis article is for subscribers only.
A hotter-than-expected jobs report means core inflation needs to be convincingly cooler for the Bank of Canada to go ahead with a June rate cut.
April’s job gains blew past expectations by nearly five times, with the most positions added in 15 months. That resulted in traders paring odds of a June cut back to just over a third, from two-thirds before the release on Friday.