Significant jobs gain likely isn’t enough to change Bank of Canada rate hike strategy: Economists

While Canada’s labour market posted a significant jobs gain in October, many economists say it might not be enough to change the Bank of Canada’s rate hike strategy.

Canada’s labour market added 108,000 jobs in October, which significantly surpassed estimates of an increase of 10,000 by economists tracked on the Bloomberg terminal.

But Andrew Grantham, senior economist at CIBC Capital Markets, said he still sees the Bank of Canada hiking interest rates by 50 basis points at its next announcement in December.

“Today's data shouldn't change the narrative that we are closer to the end of the current rate hiking cycle than the beginning, although it does support the call for a 50bp (basis points) hike rather than 25bp in December,” Grantham said in a note to clients Friday.