Wages continued to grow in September, extending a trend that could force the Bank of Canada to hike interest rates again. Read on.
, marking the seventh consecutive month that paycheques increases faster than prices, as measured by Statistics Canada’s consumer price index.last month, triple the Bay Street consensus, according to a Bloomberg survey of professional forecasters. The jobless rate was unchanged at 5.5 per cent, which is up from the recent low of around five per cent, but still a historically strong number that suggests the economy continues to have decent momentum..
Economists aren’t sure that September’s wage result will be enough to push the central bank to hike rates, but they said the number will have the bank’s attention. While latest headlines from the Labour Force Survey were a shock, some economists said the report wasn’t as strong as it appeared. “The bank will likely need to see significant weakness in these reports to prevent it from pulling the trigger on another hike,” Orlando said.among inflationary pressures that were “stubbornly persistent.” He said during the speech that he had yet to see clear signs that wage growth was moderating, adding that most measures were hovering around four to five per cent.
From St-Arnaud’s perspective, continued growth in wages could tilt the balance to another interest rate hike by the central bank. But, the next inflation numbers will be more important, he said in an email. Those data are set for release on Oct. 17 and another increase likely would push the Bank of Canada to hike again, St-Arnaud said.
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