downturn in the labor market

Meanwhile, Prime Minister Stephen Harper said that the recovery remains “extremely fragile” and expects the downturn in the labor market to weigh on economic activity going forward, and the cautious outlook held by policy makers may continue to hamper long-term expectations for higher interest rates in Canada as the BoC pledges to hold borrowing costs at the record-low going into the following year. At the same time, Governor Carney continued to see a risk for a slower recovery following the marked appreciation in the exchange rate, and said that the rise may become an increased concern “if the currency appears to move away from fundamentals.” Nevertheless, the central bank head stated that it will be “absolutely essential”