Bank of Canada survey leaves room for rate cut: economists

The Business Outlook Survey for the third quarter found that a rising number of firms are planning for a recession. Photo by Adrian Wyld/The Canadian Press files

Economists think the results of the Bank of Canada ‘s latest business outlook survey add to the case in favour of central bank policymakers cutting rates again when they meet next week.

The Business Outlook Survey for the third quarter found that a rising number of firms are planning for a recession — 33 per cent versus 28 per cent in the previous quarter — with continued worries about trade tensions with the United States.

The survey of 100 businesses conducted prior to Canada eliminating retaliatory tariffs also found firms reported uncertainty was holding back investment planning and dampening hiring intentions.

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