The Bank of Canada's business outlook survey found average business sentiment improved in the third quarter, though firms remained worried about rising costs and the war in the Middle East. About three-quarters of the interviews, however, took place before trade talks between Canada and the United States broke down at the end of August and Canada announced new counter-tariffs. Afterward, firms pointed to new U.S. tariffs on some goods and Canadian counter-tariffs as weighing on their outlooks, and the bank said tariffs are dampening sentiment, weakening export and investment prospects, and pushing up costs and prices. A separate consumer survey found long-term inflation expectations rose to match short-term ones, and consumers reported better financial health than last quarter, though high prices and economic uncertainty still weigh on them. The bank's next rate decision and monetary policy report are due Oct. 28.
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Related tickers and likely impact
USD/CAD
▲ Likely positiveRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/16/2026 | 1.41389 |
| Change that session | -0.32% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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