Bank of Canada Surveys Show Easing Inflation, Persistent Economic Concerns

While inflation expectations have moderated, Canadian businesses and consumers remain cautious about spending and growth prospects.

Consumer sentiment has slightly improved due to lower inflation and interest rate cuts, but remains cautious with spending on essentials prioritized over discretionary items.
More than half of consumers still anticipate a recession in the coming year, despite a slight decline in pessimism about personal finances.
Businesses report weak demand and continue to delay investments, although inflation expectations have eased, aligning closer to the Bank of Canada's targets.
The labour market showed unexpected strength with a decline in unemployment and 47,000 jobs added in September, complicating the central bank's upcoming rate decision.
The Bank of Canada is expected to make a rate cut decision on October 23, with markets divided between a 25 or 50 basis point reduction, contingent on upcoming inflation data.