Job Openings and Labor Turnover – January 2023

The Bank of Canada today held its target for the overnight rate at 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of quantitative tightening. Global economic developments have evolved broadly in line with the outlook in the January Monetary Policy Report (MPR). Global growth continues to slow, and inflation, while still too high, is coming down due primarily to lower energy prices. In the United States and Europe, near-term outlooks for growth and inflation are both somewhat higher than expected in January. In particular, labour markets remain tight, and elevated core inflation is persisting. Growth in China is rebounding in the first quarter. Commodity prices have evolved roughly in line with the Bank’s expectations, but the strength of China’s recovery and the impact of Russia’s war in Ukraine remain key sources of upside risk. Financial conditions have tightened since January, and the US dollar has strengthened. In Canada, economic growth came in flat in the fourth quarter of 2022, lower than the Bank projected. With consumption, government spending and net exports all increasing, the weaker-than-expected GDP was largely because of a sizeable slowdown in inventory investment. Restrictive monetary policy continues to weigh on household spending, and business in tweet at 10:01am: BOC REITERATES ITS WILLINGNESS TO RAISE POLICY RATES FURTHER IF NECESSARY TO RETURN INFLATION TO THE 2% TARGET. tweet at 10:02am: BOC: PRICE INCREASES FOR FOOD AND SHELTER REMAIN HIGH, CAUSING CONTINUED HARDSHIP FOR CANADIANS. tweet at 10:01am: Boc: the most recent economic data are consistent with banks' expectations that overall inflation will fall to around 3% by the middle of this year.

tweet at 10:24am: Fed’s Powell Stresses ‘No Decision Made’ On Pace Of Rate Hikes tweet at 10:25am: Powell: Haven’t Made Any Decision Yet About March Meeting, Is Data Dependent - Terminal Rate Likely to Be Higher Than We Expected - Have Important Data Before March Meeting - Haven’t Seen JOLTS Data Yet tweet at 10:32am: POWELL: NO ONE SHOULD ASSUME FED CAN PROTECT ECONOMY IN A DEBT DEFAULT