The Bank of Canada has left the target for the overnight rate at 5%, in line with market expectations, and is continuing with its policy of quantitative tightening. Nonetheless, there are subtle dovish shifts. The statement acknowledges that “a broad range of indicators suggest that labour market conditions continue to ease” and with the workforce growing more quickly than those employed, we are seeing a rise in the unemployment rate, which is helping to moderate wage pressures. The BoC do expect growth to “pick up in 2024” after having stalled in the second half of 2023, so while there is “excess supply” in the ... (full story)