06:55 AM EDT, 10/08/2024 (MT Newswires) -- S&P Global Ratings noted that Canada will release the Labour Force Survey (LFS) for September this Friday, at 8:30 a.m. ET.

It said it expects monthly job gains to pick up in September by 35,000 after adding 22,000 jobs in August, taking the three-month average to 18,000 jobs per month.

S&P Global predicts the Canadian unemployment rate to remain steady from the previous month at 6.6%. This translates to the unemployment rate 0.9 percentage point higher since the beginning of the year and 1.6 percentage points higher since January 2023. Meanwhile, it anticipates hourly earnings to edge down to 4.8% year over year from 4.9% in August.

Bank of Canada will release the Business Outlook Survey (BOS) on Friday too, but at 10:30 a.m. ET, pointed out S&P Global.

September LFS data and BoC's BOS will be keenly watched to gauge the economic weakness before the central bank's October meeting, stated S&P Global. In the past, the BoC has acted independently of the United States Federal Reserve's policy actions. During this monetary cycle, it fought against rising inflation earlier and also kicked off the easing cycle at least a few months before the Fed.

Weak labor market conditions, benign inflationary pressure, and the US Federal Reserve's 50bps cut in September might influence the BoC's Governing Council to quicken its rate cuts. S&P Global penciled in a 25bps rate cut for the October meeting.

However, S&P Global maintains that with economic growth still weak and inflation already in the comfort zone, a 50bps rate cut cannot be ruled out.