Bank of Canada to release business outlook and consumer expectations surveys today

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The Bank of Canada will release its business outlook and consumer expectations surveys this morning.

The surveys will provide insight on how inflation expectations among businesses and consumers have evolved in the fourth quarter.

Amid decades-high inflation, the Bank of Canada has been concerned about elevated business and consumer inflation expectations. The central bank has aggressively raised interest rates to dampen these expectations and slow the pace of price growth. Its key interest rate was hiked to 4.25 per cent in December, while the annual inflation rate was 6.8 per cent in November.

The results of the surveys will play a key role in the Bank of Canada's next interest rate decision, which is set to be made on Jan. 25.

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