9 July 2010

Mark Carney, the Bank of Canada Governor, says that European debt crisis and unstable U.S. recovery will seriously influence his future decisions. During July 20 week he will announce the central bank’s latest forecasts, so it will give us at least some clues concerning his future actions.
The June employment numbers (the highest in Ontario and Quebec) were the results of retailers and wholesale companies taking on 21,600 workers. Another 20,000 people were hired by employers in the business, building category etc.
According to Statscan report, the full-time employment rose by 48,900, and the part time – by  44,200.
Here are some of the number crunchers quotations:
“It’s hard to believe that the BoC has any choice but to raise the rates on July 20th”, – Gorica Djeric, Derek Holt, Scotia Capital Inc.
“There are no doubts about this strong report. The employment level proves that the Canadian recovery hasn’t stopped yet. This report shows us the vital necessity to raise rates for 25 bps (0.25%) on July 20”, – Benjamin Reitzes, BMO Nesbitt Burns
“The employment rate is an important indicator. It suggests economic momentum is cooling to a pace of 2.5-3.5% (it’s down from the 5-6% growth rates in the previous two quarters)”, – Diana Petramala, TD Bank.

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