The Bank of Canada’s latest quarterly survey of business expectations showed inflation expectations have jumped to their highest in more than a year, and most companies plan to increase prices to offset higher input costs. (The Logic)
Skip to content
The Bank of Canada’s latest quarterly survey of business expectations showed inflation expectations have jumped to their highest in more than a year, and most companies plan to increase prices to offset higher input costs. (The Logic)
Talking point: The Business Outlook Survey was conducted Feb. 6 to 26, around the time the world was learning U.S. President Donald Trump was serious about tariffs. Measures of sentiment deteriorated; executives expected weaker sales over the next 12 months, prompting them to freeze investment plans and taper hiring. The central bank could opt to soothe that anxiety with additional interest-rate cuts. However, for the first time in two years, the balance of firms predict their input costs will rise, explaining why year-ahead inflation expectations increased to 3.6 per cent. That’s well off the Bank of Canada’s target of two per cent, constraining its ability to lower interest rates.
Loading...
Thanks for sharing!
You have shared 5 articles this month and reached the maximum amount of shares available.
CloseThis account has reached its share limit.
If you would like to purchase a sharing license please contact The Logic support at [email protected].
CloseGift the full article!
You have gifted 0 article(s) this month and have 5 remaining.
Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.
Most Popular This Week
In-depth, agenda-setting reporting
Great journalism delivered straight to your inbox.
Commentary
Carmichael: Canada’s Nobel-winning economist thinks Carney is on the right track
Briefing
Canadian investors can’t let foreign capital crowd them out of infrastructure deals, Weston says
Cohere outlines plans to spend $4B on R&D and AI infrastructure in Canada
Binance starts recovering frozen assets following US$6.3B hack
Best business newsletter in Canada
Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.
Exclusive events
See the bigger picture with reporters and industry experts in subscriber-exclusive events.
Membership in The Logic Council
Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.
