This basically confirms their story, so steady as she goes on that front.
This is really a tale of two job markets.
The Bank of Canada cannot afford to be complacent if it wants to keep inflation in check over its 18-24 month time horizon ... Look for the overnight rate to peak at 4 percent.
This report paints a picture very similar to the fall survey and shows an economy practically at full capacity.
They said nothing's changed in their view of the economy so markets focused on the word 'modest' to mean they'll be less aggressive.
So exports actually contributed to net GDP growth in November.
If we end up with a majority government you could see a bit of a rally in the currency but it would be short-lived. Canada's economy is comfortably in surplus and that backdrop isn't going to change, no matter who wins.
In our view, there is still is every reason for the Bank of Canada to continue to nudge its rate higher, and we are not changing our call for a four per cent (overnight) rate by April.
The market is starting to price out some of the rate increases that have been priced in.
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