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Bank of Canada: Business Woes Amid Trade Tensions

1/20/2026

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Story summary
  • The Bank of Canada report finds subdued business sentiment amid ongoing U.S.-Canada trade tensions.
  • It notes weak sales growth and a high share of firms planning layoffs, yet some remain optimistic about modest sales growth.
  • Consumer anxiety persists over high prices and economic uncertainty, with many fearing job loss or missed payments.
  • Inflation expectations remain elevated, especially for food and housing, and the report notes challenges for lower-income households amid rising costs.