Data released on Friday showed employment rose by 63,800 in September in Canada, surpassing expectations. Analysts at CIBC point out that weakness under the hood should limit its implications for the Bank of Canada.

Weakness under the hood

While the headline increase in employment was a surprise, the weaker detail and decline in hours worked point to a still sluggish economy to end Q3. 

With GDP having basically stalled in Q2 and Q3, and without a clear indication that it was accelerating again heading towards the final quarter, we still see the Bank of Canada remaining on hold despite the stronger-than-anticipated inflation readings recently.