Bank of Canada (BoC) to keep its key interest rates steady at 4.50% through 2023.
“It is a combination of a pullback in commodity prices impacting resource sectors and generally weak sentiment for North American equity markets being driven out of the United States,” said Colin Cieszynski, chief market strategist at SIA Wealth Management. Latest employment data showed that the Canadian economy added more jobs than expected in March and the jobless rate remained near a record low for the fourth consecutive month, indicating continued strength in the labor market despite growing worries of an economic slowdown.
Meanwhile, a poll by Reuters showed that economists expected the Bank of Canada (BoC) to keep its key interest rate steady at 4.50% through 2023.
“The more important number for the BoC is the wage growth number which came down, suggesting inflation pressures are easing and would support the Bank of Canada remaining in its pause mode,” Cieszynski added.