Canadian consumers and businesses hope for lower interest rates

Findings from the Bank of Canada released on Monday show that Canadian consumers and businesses are optimistic about the future, according to the Bank of Canada's quarterly survey of consumer expectations, although consumers still feel the negative effects of inflation and high interest rates. and almost two-thirds of them have reduced or postponed their expenses, but Canadians hope that interest rates will decrease in the next 12 months and are less pessimistic about the future of the economy and their financial situation. Business owners also believe that Canada's population growth will lead to will sell more and also expect interest rates to decrease next year.

The central bank kept interest rates steady at 5 percent for the fifth time in a row in March, but Central Bank Governor Tif Maklam said it was still "too early" to cut it.

Economists have predicted that Canadians could see a gradual rate cut starting June 5 (when the central bank will announce interest rates) or later this year.

Based on the belief that interest rates will decrease, companies that have struggled in the past 12 months expect their sales growth to increase in the next 12 months.

The report also found that more people are buying or considering buying a home or condo, up from 13 percent on average last year to 15 percent in the first four months of 2024.

news source