In an interview this week, Stephen Poloz, the Bank of Canada Governor, said that, even if  employment growth strengthens, the central bank has scope to keep interest rates at historic lows.

The next Bank of Canada rate announcement is schedule for September 3, and obviously everyone is expecting the benchmark to remain at 1%. In fact, economists surveyed by Bloomberg forecast policy makes to keep the benchmark at 1%, where it’s been for almost four years, until the third quarter of 2015.

While Canada is doing much better than it’s G-7 counterparts with respect to recouping job losses form the recession, job growth has stalled. Only 25% of jobs created over the past year have been full-time. So while technically employment growth has hovered around the 1% mark, part-time jobs don’t generate the same income so we don’t see the same amount of corresponding spending that you would get from a usual 1% employment growth.

In early August, after a false start with job numbers, Statistics Canada report that part-time jobs increase by 59,000 but full-time jobs decreased by 18,100.

Of course the US recovery has a lot to do with our recovery to date, the Bank of Canada is confident that the US Recovery is on a solid footing so hopefully we should start seeing improved exports in the longer term.

The drop in the Canadian dollar will most certainly help all of the above.

Nothing new, but interesting tidbits none-the-less!