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Canadian Businesses Still Upbeat Despite Trade Worries, Slowing Economy: BoC

Posted April 09, 2018

Under Economic Issues, International Trade Issues

(Barrie McKenna – Globe & Mail)

Canadian companies remain surprisingly upbeat about the future in spite of the slowing economy and rising trade tensions, according to the Bank of Canada’s latest survey of business sentiment.

The report strengthens the case for another interest rate hike by the Bank of Canada as early as next week.

The central bank has already raised its key rate – now at 1.25 per cent – three times since last June, citing an economy that is running at close the full capacity. Its next scheduled rate announcement is April 18. The Canadian dollar jumped after the release of the report, hitting 78.64 US cents by late morning.

“Business sentiment continues to be positive, supported by healthy sales prospects,” the bank said Monday in its first quarterly Business Outlook Survey of 2018, conducted Feb. 12 to March 9. Click here to read more.

Related: Business Outlook Survey – Spring 2018 (Bank of Canada)