Canadian firms are still seeing weak demand and slow sales growth but conditions improved marginally in the third quarter and could be boosted by rate cuts, according to a Bank of Canada survey released on Friday.
“Businesses continue to experience muted inflationary pressures: demand is weak, firms have excess capacity and price growth continues to slow,” the survey said. “Firms largely attribute the improvements in demand indicators this quarter to the two interest rate cuts ,” the survey said. The bank also cut rates in September.
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