BoC Rate Hike Uncertainty Persists Amid Strong Job Numbers

Canada's job market showed unexpected resilience in July, adding over 75,000 jobs and exceeding forecasts. According to Dominion Lending Centres Group chief economist Sherry Cooper, this strong economic performance may not yet convince the Bank of Canada to raise interest rates in September.

Cooper stated that the BoC's rate strategy remains unchanged for now but noted that a hike is possible if the economy continues to strengthen. The unemployment rate dropped to 6.4%, its lowest level since July 2024, further complicating the outlook for the Bank of Canada's next interest rate decision.

Ontario led job creation in July, adding 52,000 jobs, while British Columbia added 18,000. Average hourly wages among employees rose 2.8% year over year in July, down from 3.3% in June.