‘Exactly what BoC is looking for’: Economist on business outlook survey

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One economist says Canada’s economic data is moving in line with expectations following the release of the Bank of Canada’s business outlook survey.

David Doyle, managing director and head of economics at Macquarie Group, joins BNN Bloomberg to discuss the BoC business outlook survey.

“By in large, all of the data or most of the data that is included in that report could be used by Bank of Canada later this month in order to cut rates by a further 25 basis points,” Doyle told BNN Bloomberg during an interview on Monday. The recent data, which points to slowing growth in firms’ input and selling prices amid a weaker economic backdrop can be correlated with unions and public sector workers, Doyle said.

 

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Canadian businesses keep investment spending below average due to weak demand outlook: BoC surveyThe Bank of Canada said on Monday in its second-quarter survey that businesses are expecting interest rates to come down by up to 100 basis points over the next year
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