June 2023 Market Update from Canada Life Investment Management
Canada sees first decline in job numbers since August 2022
The Bank of Canada surprised markets by raising its benchmark overnight interest rate by 25 basis points at its June meeting. The move came after economic growth numbers came in stronger than expected. Meanwhile in the U.S., the U.S. Federal Reserve Board held off on increasing rates. But it did signal that more hikes are coming this year despite the pause.
Tighter financial conditions are continuing to impact Canada’s real economy, with the labour market starting to show signs of easing. May job losses totalled 17,000, the first decline since August 2022, bringing the unemployment rate to 5.2%. But despite the slowdown, Canada’s labour market remains robust.
In this month’s market update, we also consider why the Bank of England is taking a different course from its European counterparts, and why oil prices could stabilize despite softening economic conditions.
Read the full market commentary on canadalifeinvest.ca, including the following topics:
North American central banks go in different directions
- Canada’s labour market showing signs of easing
- BoE faces highest inflation in G7
- Saudi Arabia drops its oil production further
