Iran Conflict Dampened Business Confidence, Raised Inflation Outlook: Bank of Canada

Iran Conflict Dampened Business Confidence, Raised Inflation Outlook: Bank of Canada

The effects of the war in Iran undermined business confidence and led to a sharp increase in inflation expectations in the second quarter, the Bank of Canada’s most recent business outlook survey suggests. A rise in input costs and geopolitical uncertainty linked to the conflict has also lowered sales expectations for most businesses outside the oil and gas sector in Western Canada, the findings show. At the same time, inflation expectations inc…