Canada Holds Rates Steady Amid Hawkish Tone, US Labour Market Surges

The Bank of Canada held interest rates at 2.25% but struck a more hawkish tone, citing elevated energy prices and inflation risks.

Canada's labour market lost momentum in August, shedding over 40k jobs, while the unemployment rate remained steady at 6.4%.

In the US, Treasury yields rose amid uncertainty about the Fed's next move, higher oil prices, and ongoing fiscal concerns.

The Bank of Canada acknowledged the economy's recent momentum but flagged new trade tensions with the US as a confidence risk rather than a material hit to growth and inflation.