Improving business sentiment hits highest level since 2011: Bank of Canada poll
OTTAWA — The Bank of Canada says business sentiment has reached its highest level since 2011 with corporate expectations for key areas like future sales, investment and hiring intentions all above historical averages.
The findings Friday in the bank’s forward-looking, quarterly survey of Canadian firms fuelled growing expectations the bank will start hiking its benchmark interest rate next month.
The combination of the strengthening economy and recent, “more-hawkish” comments by governor Stephen Poloz have fed speculation the bank will increase its rate for the first time in seven years as soon as July 12.
“Results for nearly all the (business outlook survey) survey questions are above their historical averages, pushing the indicator to its highest level since 2011,” the bank said, referring to its measure that summarizes all the responses in its survey of about 100 Canadian companies.