Bank of Canada survey: Companies' concerns about the worst-case tariff scenario have eased

The Bank of Canada said in its quarterly survey released on Monday that Canadian businesses believe the likelihood of the worst-case tariff scenario has decreased, but they remain cautious and are controlling the scale of hiring and investment. The bank's Business Outlook Survey showed that short-term inflation expectations among businesses have fallen to levels seen at the end of last year, and the number of companies planning to address an economic downturn has slightly decreased. The survey stated, "Tariffs and related uncertainties continue to have a significant impact on business outlooks. However, the worst-case scenario envisioned by businesses in the previous quarter is now seen as less likely to occur." The Bank of Canada indicated that about one-third of businesses expect tariff-related costs to increase, a decrease from about two-thirds in the previous quarter.