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 somewhat surprising hawkish turn this week might now look "somewhat premature" due to details in August's labor data, says Thomas Ryan of Capital Economics.
Employment fell 41,700 in August although the unemployment rate remained unchanged at 6.4%.
More notably, wage growth slo…