• Notes From The Desk | Business Outlook Survey

Notes From The Desk | Business Outlook Survey Jan 17 2022

Today’s business outlook survey confirmed that the Canadian economy is at full capacity:

· 77% of firms plan on hiring in 2022
· 78% of firms report difficulty in meeting unexpected demand
· Labour shortages reported across most sectors
· 67% of firms expect inflation to be 3% or higher

Conclusions:

· The Bank of Canada should be concerned by the inflation expectations
· While we think it’s unlikely, a January rate hike can not be ruled out.
· If they don’t raise the overnight rate this month, expect a clear signal for lift-off in March.

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