Bank of Canada makes benchmark rate announcement
That view was bolstered by employment statistics that saw 54,700 new jobs added to the national economy in December, according to Statistics Canada, far surpassing experts’ predictions of a 25,000 increase that month.
However, Canadian Imperial Bank of Commerce (CIBC) deputy chief economist Benjamin Tal highlighted the dilemma facing the Bank in an interview with BNN Bloomberg, noting that it was caught between pandemic concerns and the wishes of the business community.
“We are in the middle of the winter. Omicron is still with us. It will be with us throughout the winter. So if you’re the Bank of Canada, do you want to start raising interest rates in the middle of this madness?” he said. “At the same time, the business community is telling you to start moving.”
The Bank of Canada’s next announcement on its policy interest rate is scheduled to take place on March 02, with its next full outlook for the economy and inflation pencilled in for April 13.