August 2024 Market Update from Canada Life Investment Management

Data points to more rate cuts from Canada’s central bank

For the second month in a row Canada’s economy lost jobs. This shows further signs of a slowdown in Canada’s labour market. The jobless rate, according to Statistics Canada, remained unchanged at 6.4% in July, its highest level in over two years. The Bank of Canada may be poised to cut interest rates again this year, possibly at a third consecutive meeting in September.

Three other trends in August you need to know

• Weak U.S. labour market raises recessionary concerns
• Bank of England (BoE) begins loosening monetary policy
• Bank of Japan (BoJ) raising rates hurts yen carry trades