The day saw some offsetting developments with strength evident in U.S. housing starts and the Philadelphia Fed index and in Canada, a stronger than expected manufacturing shipments report. |
The labor market is getting too tight, so the Bank of Canada may have to raise the rate more aggressively to keep inflation from taking hold. Higher interest rates get investors to buy the Canadian dollar. |
The numbers still suggest growth in the third quarter of about 3 percent, so the economy continues to expand at fairly close to long-term average rate, |
This statement did imply a slightly less aggressive tone relative to its previous statement. |
We saw most of the indicators move up in the month, with the exception of the prices paid index, which generally provides an indication of strength in activity. |