Bank of Canada sees worst drop in business sentiment since 2020

, triggered by large increases in interest rates and high prices that reduces consumption. The two groups also see inflation remaining elevated over the next one or two years before returning to the central bank’s target in the long term.Article content

While both have similar inflation expectations and views on the probability of a recession, they diverge on wages. The average expected wage increase among businesses has receded, with nearly half not seeing abnormally high wage growth beyond the next 12 months. But consumer expectations for wage growth have increased, with 40 per cent of workers now seeing pay gains of more than 4 per cent over the next year.

Most firms said rate hikes aren’t yet holding back their investment plans. But fewer businesses are planning to hire, and some in information technology, engineering and trades are constrained by supply of skilled workers. The Bank of Canada’s next decision is Oct. 26, where policymakers are expected to raise interest rates by at least 50 basis points, according to market pricing. The benchmark overnight rate is currently 3.25 per cent, up three percentage points since March.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank of Canada sees worst drop in business sentiment since 2020Most businesses and consumers think a recession is likely within the next 12 months
Source: VancouverSun - 🏆 49. / 61 Read more »

Bank of Canada sees worst drop in business outlook since 2020 - BNN BloombergSentiment among Canadian firms fell the most since the beginning of the pandemic, with inflation expectations among consumers and businesses showing few signs of abating, Bank of Canada surveys show. BNN Bloomberg is down on the Rogers cable network. Government makes up 55 % of GDP in Canada. Why does the central bank destroy the private sector to throttle the economy. All they really need to do is stop providing support for government bonds. Problem solved.
Source: BNNBloomberg - 🏆 83. / 50 Read more »