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5 Things to Know Today: 68,000 Jobs Lost, a Weaker Loonie and the Oct. 28 BoC Decision

  Oct 12, 2026   Happy Thanksgiving. Canadian markets are closed today, but the numbers that shape your wallet aren't taking the day off. Here are five things to know on Monday, October 12. 1. Canada lost about 68,000 jobs in September, wiping out 2026's gains Statistics Canada reported that employment fell by roughly 68,000 in September, following a 41,700-job drop in August. The unemployment rate edged up to 6.5% from 6.4%. Economists had forecast a small gain. Put the two months together and Canada has lost about 41,200 jobs so far this year, compared with a gain of 211,300 over the same stretch of 2025, according to Reuters. The losses were spread almost evenly between full-time and part-time work and were concentrated in the public sector. Workers aged 15 to 24 lost 48,000 jobs, Quebec shed 49,000, and Ontario's unemployment rate sits at 7.0%, the highest among the large provinces. Average hourly wages were up 2.3% from a year ago. What it means for you: A softening j...
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Inflation surprises keep Bank of Canada from cutting rates

 

The Bank of Canada (BoC) is expected to maintain its key overnight rate at 5% on Wednesday, despite the sluggish economic growth and the global trend of easing monetary policy. The reason is the persistent inflation pressure that has exceeded the BoC’s 2% target for four consecutive months.

The latest inflation data for December showed a 3.4% increase in the consumer price index, the highest since May 2021. The core inflation, which excludes volatile items such as food and energy, also rose to 2.8%, the highest since June 2019. These numbers surprised the markets, which had anticipated a rate cut by the BoC in the first half of 2024.

However, the BoC is likely to wait for more evidence that the inflation spike is temporary and not driven by underlying demand pressures. The BoC has attributed the high inflation to transitory factors such as supply chain disruptions, higher commodity prices, and base effects from the pandemic. The BoC expects inflation to return to the 2% target by the end of 2025.

The BoC will also release its quarterly Monetary Policy Report on Wednesday, which will provide updated forecasts for the Canadian economy. In October, the BoC projected a 0.8% annualized growth rate for both the third and fourth quarters of 2023, well below the potential output growth of around 2%. The BoC will likely revise down its growth outlook for 2024, reflecting the impact of the Omicron variant, the uncertainty over the fiscal policy, and the weak business investment.

The BoC will also face questions about its communication strategy, which has been criticized for being too vague and inconsistent. The BoC has not provided any forward guidance on its future policy actions, unlike its counterparts such as the Federal Reserve and the European Central Bank. The BoC has also been reluctant to use unconventional tools such as quantitative easing or negative interest rates, which could provide more stimulus to the economy.

The BoC will announce its rate decision and the Monetary Policy Report at 9:45 am ET on Wednesday, followed by a press conference by Governor Tiff Macklem at 11:15 am ET. The markets will closely watch for any hints on the BoC’s policy stance and its assessment of the inflation and growth outlook.

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