Bank of Canada's Interest Rate Path Clouded by Changing Job Market

Bank of Canada warns of ‘low-hire, low-fire’ job market that complicates rate decisions

Workers may experience lasting damage from prolonged lack of churn, official says

Bank of Canada's interest rate path clouded by changing job market

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Bank of Canada Confronts a Stubborn Job Market That May Blunt Its Rate Cuts

Canada’s central bank faces a labor market that no longer behaves as it once did. Nicolas Vincent, external deputy governor at the Bank of Canada, laid out the challenge in plain terms Tuesday. Distinguishing between short-term fluctuations and lasting transformations proves essential. That’s because the difference affects how officials conduct monetary policy. The tools at their disposal respond well to temporary swings and keep inflation near …

Bank of Canada warns low hire, low fire job market creates ‘inertia’

Bank of Canada External Deputy Governor Nicolas Vincent says the country’s labour market is undergoing structural change — as evidenced by its “low hire, low fire” environment — that will complicate monetary policy decisions.