Canada’s jobless rate unexpectedly fell to the lowest in almost five years in September as young people dropped out of the labor market, helping pull the participation rate to the lowest in more than a decade.
Quebec’s separatists will return to power for the first time in nine years, in an election marred by a fatal shooting at the Montreal nightclub where Parti Quebecois leader Pauline Marois was giving a victory speech.
The Bank of Canada signaled it may seek to curb record household debt levels by raising interest rates for the first time in more than two years, sharpening the divide with other Group of Seven nations focused on easing policy to combat a cooling global economy.
Bank of Canada policy makers kept their key interest rate unchanged today and added language about a potential increase for the first time since September, saying they will raise rates “eventually” as the economy recovers.
Canada’s economy showed signs of strength today with gains in employment and housing, ending a week where the central bank delayed a plan to raise interest rates and the finance minister said slower growth is sapping revenue needed to curb deficits.
Bank of Canada Governor Mark Carney said the need to raise interest rates is less urgent because the economy will take longer to reach full output, keeping inflation below target until the second half of next year.