Weak wage growth highlights excess capacity in Canada, market talk says
Capital Economics’ Thomas Ryan says the Bank of Canada’s hawkish turn may be premature after August labor data: employment fell 41,700 while the unemployment rate held at 6.4%. Wage growth weakened, pointing to excess capacity.
The Bank of Canada's hawkish turn this week may now look somewhat premature, Thomas Ryan of Capital Economics said, after August labour data showed employment fell 41,700 and the unemployment rate held at 6.4%. Ryan said the wage data also pointed to excess capacity in Canada.