BOC’s Macklem says job market slack may continue in short term
- Reiterates hawkish bias
- Canada may reduce monetary stimulus assuming economy keeps growing
- Biggest labor market challenge in next 5 years will be finding enough workers, not jobs
- Persistent CAD strength is a reason businesses should invest in machinery
USD/CAD edges to the downside but the market is skeptical that the BOC is serious about rate cuts while others are easing.