Immigration levels will have an influence the Bank of Canada’s view of upcoming labour market data – and how that data will affect inflation in turn, Conference Board of Canada chief economist Pedro Antunes said in an interview with BNN Bloomberg.
“We’re adding to the supply of labour with the strong immigration numbers, and that is helping to slacken the labour market,” Antunes said. “I think the Bank of Canada is very aware of that. When you see 3% population growth and wages and employment still rising, that generates fairly substantial underlying strength in consumer spending, so it’s hard for the Bank of Canada to slow the economy with that kind of momentum. ”
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