According to Jinshi, Royal Bank of Canada economist Nathan Janzen said that the Bank of Canada will not regret cutting interest rates this week due to signs that the labor market generally continued to gradually cool in May. Although the employment rate continued to climb, the unemployment rate rose slightly to 6.2%, and the details of the employment data were mixed. Janzen pointed out that wage growth was unexpected and the central bank will pay close attention to the future inflationary impact. However, other wage indicators showed smaller increases. As interest rates remain restrictive, the Bank of Canada still has room to cut interest rates further without triggering a rebound in price increases.
