Bank of Canada business outlook survey preview:
Bank of Canada business outlook survey preview: Analysts expect the outlook survey, due at 10:30 ET, to reveal some trimming to the expansionary outlook, but an with outlook that is consistent with ongoing growth in 2018 and 2019. The report should show further tightening of capacity, with labour shortages on the rise. Well contained inflation expectations (in the BoC's target band) are projected, but will remain in the upper half of the 1-3% band. Analysts project the balance of opinion on future sales growth will slip to 3.0 in Q3 from 6.0 in Q2. Pessimism over stalled NAFTA talks may be evident in this survey as it was presumably conducted from late August to mid-September (last year was August 24 to September 19), and hence would NOT capture the anticipated optimism stemming from the USMCA deal announced at the beginning of October. Analysts expect a 25 bp hike to 1.75% at the October announcement. Three to four additional 25 bp boosts are projected in 2019. Growth and inflation data are consistent with ongoing, gradual, policy normalization from the Bank of Canada.