The Bank of Canada said on Monday that businesses expected average inflation to remain high over the next two years, but believed expected interest rate hikes and improving supply chains would calm longer term.
According to the Bank of Canada’s latest Business Outlook Survey, which looked at business sentiment in the first quarter of 2022, Canadian businesses expect inflation to hit the bank’s 2.0% target center in three years.
The report also revealed that the number of companies facing supply chain difficulties was at an all-time high.
Growth expectations
About half of Canadian companies surveyed also expect to face upward cost pressures from rising energy and commodity prices due to the war in Ukraine, additional research shows. conducted in March to complement the Business Outlook Survey.
The report also noted that Canadian businesses expected strong sales growth in 2022, but at a more moderate pace than last year.
The Bank of Canada also pointed out that Canadians’ short-term inflation expectations were at a record high in the first quarter of 2022, according to results from its quarterly consumer expectations survey, which the central bank also released. published on Monday.
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