BOC business outlook survey indicator -3.51% vs -2.31% prior

<ul><li>Overall survey indicator at the lowest since Q2 2020</li><li>53% of firms expect inflation over 3% for the next two years, down from 64% in Q2</li><li>27% of firms think it will take longer than three years to return to BOC's 2% inflation target, down from 32% in Q2</li><li>Future sales indicator at 0 vs +8 prior</li><li>One third of firms expect Canada to be in recession next year, the same as in Q2</li><li>more than 70% of firms say higher interest rates are negatively affecting them</li><li>Firms report widespread easing in intensity of labor shortage</li></ul><p>This is an important survey for the Bank of Canada and should push them further to the sidelines. The OIS market is still pricing in a hike for March, which is baffling to me because there are clear signs of a slowdown in Canada, particularly in real estate.</p><p>Firms are not seeing higher wages.</p>

This article was written by Adam Button at www.forexlive.com.