The latest job numbers coupled with growing exports are trigger points that could – and probably should – push the Bank of Canada to resume its rate hike program.
The central bank decided to sit on the sidelines after its last increase but the economists at ScotiaBank say it probably should get off the bench. They point to strong growth in both employment and exports.
Saskatchewan, incidentally, has been playing a leading role in these. We are topping the growth chart on exports with strong demand for potash and canola. And we were stood number six among the provinces when it came to actual job increases last month. We were ahead of Alberta and Quebec, for example.
But the ScotiaBank team says these figures – along with robust gains in hours worked by employees – are going to push up the GDP numbers when they are reported for the first quarter of the year. Further, they are seeing upward pressure on wages which, nationally, are now going up faster than the Consumer Price Index. And because all of this will push inflation higher, the Bank of Canada will be back with more hikes.