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Bank of Canada Surveys Suggest Higher Rates Doing Their Job

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The Bank of Canada’s latest business outlook survey reinforces expectations that the central bank will remain on hold at its policy meeting next week, BMO Financial Group economist Shelly Kaushik says. The central bank’s business and consumer surveys both point to a softer economic backdrop in the wake of an aggressive monetary tightening cycle. Ms. Kaushik says survey findings showing a slowing growth outlook combined with moderating inflation expectations also suggest higher interest rates are working as expected.

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