Financial markets and forecasters are betting on another jumbo interest rate cut from the Bank of Canada this week.
Statistics Canada’s latest job report tilted expectations in favour of a larger cut.
The Friday report revealed the unemployment rate jumped to 6.8 percent in November, up from 6.5 percent a month earlier, as more people looked for work.
A half-percentage point interest rate reduction would bring the central bank’s key interest rate to 3.25 percent.
The Bank of Canada reduced its key interest rate by half a percentage point in October in response to inflation returning to target, but signalled the size of the next rate decision would be data-dependent.
Canada’s inflation rate was two percent in October.
