The Bank of Canada said on Monday that its business outlook survey indicator came in at its lowest level in more than a decade, except for a brief period early in the COVID-19 pandemic when the economy was shut down.
A third of the firms responding said sales have fallen over the past year amid a widespread slowing of demand. “Those expecting more adverse effects ahead are less likely to plan major purchases,” the consumer report said. "However, policymakers will take note that inflation and wage expectations remain well above target, and are only receding slowly. The broadly downbeat tone of these surveys support our call for the bank to remain on hold, with a tightening bias, at next week’s meeting."
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