Hike in jobless rate to sway Bank of Canada to cut rates: CIBC

Hike in jobless rate to sway Bank of Canada to cut rates: CIBC

Andrew Grantham, executive director and senior economist at CIBC Capital Markets, talks with Financial Post's Larysa Harapyn about how the hike in the jobless rate may sway the Bank of Canada to cut rates. "We think the Bank of Canada should be cutting interest rates," he said. "They will cut interest rates in the second half of this year. They just need to be a little bit more comfortable."

canada unemployment rate: Mark Carney in dire straits: Canada, one of the largest and richest countries in the world, added just 7,400 jobs in April as unemployment rate rises to 6.9%

Mark Carney in dire straits as Canadas economy struggles with a slowdown in job growth. In April, the country added only 7,400 new jobs while the unemployment rate rose to 6.9%, its highest since November. U.S. trade tariffs on Canadian steel, aluminum, and autos are hitting hard, especially in manufacturing, which lost 31,000 jobs. Wage growth stayed flat and more people are struggling to find work. As pressure builds, many expect a Bank of Can…