Bank of Canada sees worst drop in business outlook since 2020 - BNN Bloomberg

The central bank’s business outlook indicator fell to 1.69 in the third quarter, from 4.87 previously. While still positive, that’s the largest deterioration in the confidence of Canadian firms since the second quarter of 2020.

Bonds staged a modest rally after the release of the data, with the yield on benchmark Canadian two-year debt falling about two basis points to 4.098 per cent as of 10:43 a.m. Ottawa time. The loonie was little changed. The data highlight a rapid erosion of business conditions, brought on by a combination of a slowing economic momentum, high inflation, and the central bank’s increases to borrowing costs.

While both have similar inflation expectations and views on the probability of a recession, they diverge on wages. With firms expecting demand to slow and resisting large wage increases, consumers said their wages weren’t keeping up with inflation and believed they wouldn’t catch up, resulting in spending cuts and changes in shopping habits. Consumers also see shrinking real wages as the main trigger of a recession.

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.

BNN Bloomberg is down on the Rogers cable network.

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Consumers are more pessimistic than businesses about inflation, Bank of Canada surveys showAs the Bank of Canada continues to raise interest rates to slow inflation, the new surveys also reveal most consumers and businesses expect Canada to enter a recession Isn’t is nice that the BoC has money to waste on surveys? And bonuses and raises too! How about an article on how their lying about not raising the interest rate before 2023? Who got hurt and who it helped? Consumers are wrong right ?
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