Bank of Canada more likely to cut than hike after ‘brutal’ jobs report, say economists

Why it matters

If bank canada likely continues on its current path, the spread between short- and long-term yields will narrow or widen, directly affecting mortgage pricing and corporate credit issuance costs. Should economists canada's jobs shift meaningfully, capital flows between fixed-income markets could accelerate, moving FX crosses in the process. A dovish pivot or recessionary signal would compress term premia and flatten the curve.