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UBS Sees Bank of Canada on Hold This Week After Another Weak Employment Report

BY MT Newswires | ECONOMIC | 03/16/26 12:34 PM EDT

12:34 PM EDT, 03/16/2026 (MT Newswires) -- The February Labour Force Survey (LFS) painted a rather bleak picture on Friday for the Canadian jobs market, said UBS.

Employment slipped further in February, adding to an already weak January, and the declines were broad-based across sectors, wrote the bank in a note to clients. This pushed the unemployment rate back up to 6.7%, unwinding some of the move lower in January.

Ahead of this report, UBS expected the Bank of Canada to remain on hold at Wednesday's policy meeting, and Friday's data supports its call that the BoC keep its policy rate at the lower end of its estimate of neutral to position policy to support the economy in uncertain economic times.

The bank predicts the final run of data ahead of the Wednesday meeting leaves the BoC on hold.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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