Canada's Central Bank 'Has No Possibility' of Rate Hike as Labor Market Deteriorates, Economist Says

According to economist David Rosenberg, on May 11, Canada's central bank has 'no possibility' of raising policy rates given deteriorating labor market conditions, as April employment data showed a cumulative net loss of 112,000 jobs in the first four months of 2026. However, fixed income market traders are already pricing in at least two more rate hikes by the end of 2026, creating a disconnect between economic fundamentals and market expectations. Rosenberg noted that Canada's labor market is losing momentum while disinflationary pressures are expanding.
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