Canadian employment data muddies the waters for Ba

The Bank of Canada wants evidence that its aggressive rate hikes are starting to dampen economic activity. Economist James Orlando said Canada's strong employment report tonight muddied the waters for the central bank, and the yield on Canada's 2-year government bond initially rose on the data. The increase in employment partly reflects employment growth from population growth fueled by immigration. Financial markets are pricing in expectations that the Bank of Canada will raise interest rates by 25 basis points by the end of 2023. The Bank of Canada may need to see signs of weakness in upcoming data on inflation, housing and retail sales to avoid another rate hike.