For a full list of indicators see E. Ens, C. Luu, K. G. See and S. L. Wee, “Benchmarks for assessing labour market health,” Bank of Canada Staff Analytical Note No. 2022-2 (April 2022). Sources: Statistics Canada, Bank of Canada and Bank of Canada calculations  Last observations: LFS, October 2022; BOS, 2022Q3; JVWS, 2022Q2; National accounts, 2022Q2
For our purposes, then, the neutral interest rate is the rate consistent with inflation being steady at, or close to, the midpoint of the inflation target band and a zero output gap.6 In the Reserve Bank’s framework we have a view of neutral levels for both the policy interest rate, represented by the neutral 90-day rate, to which I referred earlier, and the interest rates that households and businesses pay, which we typically proxy by the neutral floating mortgage rate.