Bank of Canada Surprise 50 Basis Point Interest Rate Cut, Launches QE For First Time


Bank of Canada Q1 business outlook survey:

Results from the spring Business Outlook Survey suggest that business sentiment had softened in most regions even before concerns around COVID‑19 intensified in Canada. Confidence deteriorated the most among firms in energy-producing regions.

Overall survey -0.7 vs +0.8
Future sales +22 vs +11 prior

The BOS indicator fell below zero, signalling that business sentiment had softened even before the COVID‑19 shock intensified. The results for several survey questions were below or near their historical average, reflecting increased weakness in energy-producing regions.

Sentiment softened in most regions even before coronavirus concerns intensified
Grocery retailers sales have reached unprecedented levels
Majority of energy firms view current shock as worse than 2008 or 2015, with financing more difficult to obtain