The Bank of Canada’s business and consumer surveys showed higher interest rates are working to ease inflation expectations and slow the rate at which companies raise prices. Monday’s reports underscored an economy hit by the bank’s aggressive rate hiking campaign, cementing views that its tightening cycle is likely done and setting the stage for policymakers to start considering cuts as early as the first half of this year. The central bank’s business outlook indicator rose slightly to -3.2 in the fourth quarter, from -3.5 previously. Firms reported that downward pressures on the growth of their input and output ... (full story)