Bank of Canada survey reflects hope for economic improvement
The Bank of Canada's quarterly survey of business executives found that conditions are showing signs of improvement and fewer are predicting a recession, though sentiment remains well below historic averages. Businesses are still reporting little appetite for investing. The report still gives an ambiguous picture for the Bank of Canada as it considers its next move. The survey shows weakness but the central bank will be encouraged by the bottoming out of sentiment. A separate survey of consumers found that inflation expectations remain well above the central bank's 2 per cent target, one more reason the central bank will be hesitant on rate cuts.
