Jobless Numbers for October 2013

OTTAWA (Reuters) - Canada added 13,200 jobs in October - all of them full-time - and the unemployment rate stayed at a nearly five-year low of 6.9 percent, Statistics Canada said on Friday.

The relatively modest job growth almost matched analysts' expectations for 13,500 new positions and follows the 11,900 jobs created in September.

The figures reflect how little short-term pressure the Bank of Canada is under to raise rates. Last month the central bank, fretting about the soft economy and sluggish exports, abandoned 18 months of warnings that rates would eventually have to rise.

The bank's softer stance prompted primary dealers to forecast the key overnight rate would stay unchanged until the first half of 2015. The bank has kept the rate at a near record low of 1 percent since September 2010.

"What will eventually move the Bank of Canada will be data on exports, international trade," said Carlos Leitao, chief economist at Laurentian Bank of Canada.

"That's the key element in the Canadian outlook, and until and unless we see exports pick up significantly, the Bank of Canada will not change," he told Reuters

It seems that interest rates are going to stay the same till the first half of 2015.

Raja Shnoudeh

Raja Shnoudeh

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