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Bank of Canada Sees Budding Business Optimism Amid Weak Demand
Bank of Canada surveys show business optimism is weak but improving, with fewer firms expecting a recession even amid rising concerns about uncertainty. Monday’s reports on business sentiment suggest higher interest rates continue to weigh on business activity, but Canada’s large firms are less concerned about a steep drop-off in growth. While higher borrowing costs are limiting sales growth, they’re also working to normalize firms’ price-setting behaviors, moderate wage growth and re-anchor inflation expectations. A separate survey showed consumers’ short-term inflation expectations stuck above the central ... (full story)