The Bank of Canada said in its third-quarter business outlook survey on Monday that consumers thought interest rates would rise over the next 12 months, according to Reuters.
Featured Statements
“A third of businesses expect Canada to enter a recession over the next year, the same as in the second quarter.”
“Recent indicators of future sales continue to moderate; the balance of opinion in the third quarter was flat compared to +8 in the second.”
“27% of companies believe it will take more than three years to return to the BOC’s 2% inflation target, up from 32% in the second quarter.”
“53% of companies expect inflation to remain above 3% in the next two years, compared to 64% in the second quarter.
“More than 70% of companies across a wide range of sectors say rising interest rates are negatively affecting them.”
“Around 80% of companies believe that the effects of the previous tightening of monetary policy on their businesses are far from over.”
“Companies’ hiring intentions are below their historical average; companies report a widespread easing of the intensity of labor shortages compared to the third quarter of 2022.”
“The overall business outlook survey indicator for Q3 came in at -3.51%, the lowest since Q2 2020; Q2 was -2.31% (rev from -2.15%).”
“Businesses expect a gradual easing of wage growth over the next 12 months.”
“55% of Canadians expect a recession next year, up from 50% in the second quarter.”
“Consumer expectations for 5-year inflation have fallen to 2.75% from 2.89% in the second quarter.”
Market reaction
USD/CAD remains under modest bearish pressure in the American session and the pair last lost 0.23% on the day, settling at 1.3625.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
