Bank of Canada’s business survey results leave ‘ample room to cut’ interest rates, economists say

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Further, firms’ inflation expectations appeared to have moderated slightly. Over the next year, businesses expect inflation of 2.9 per cent, falling from three per cent in the previous quarter and just below the top end of the Bank of Canada target range of one to three per cent. Over the next two years, businesses expect inflation to slow to 2.6 per cent. The Bank of Canada’s target for inflation is two per cent.