Iran war hampered business confidence, drove up price expectations: Bank of Canada
By: Craig Lord, The Canadian PressPosted:10:30 AM CDT Monday, Jul. 6, 2026OTTAWA - A new survey from the Bank of Canada shows the Iran war was dragging down business confidence last quarter. Read this article. . .
By: Craig Lord, The Canadian PressPosted:10:30 AM CDT Monday, Jul. 6, 2026OTTAWA - A new survey from the Bank of Canada shows the Iran war was dragging down business confidence last quarter. Read this article for free:To continue reading, please subscribe:*Billed as $5. 77 plus GST every four weeks. After 52 weeks, price increases to the regular rate of $19. 95 plus GST every four weeks. Offer available to new and qualified returning subscribers only. Cancel any time. OTTAWA - A new survey from the Bank of Canada shows the Iran war was dragging down business confidence last quarter. Read unlimited articles for free today:OTTAWA – A new survey from the Bank of Canada shows the Iran war was dragging down business confidence last quarter. The central bank’s business outlook survey published today shows that input costs and geopolitical uncertainty were on the rise over the past three months, hurting sales expectations for most firms outside the oil and gas sector in the Prairies. The share of businesses bracing for a recession to hit the economy in the year ahead nearly doubled from the previous quarter to 17 per cent, though the Bank of Canada says this measure is still lower than levels seen in 2025. Bank of Canada building is pictured in Ottawa on Tuesday, April 28, 2026. THE CANADIAN PRESS/Sean KilpatrickThe Bank of Canada says inflation expectations among businesses soared alongside spiking energy prices tied to the Middle East conflict, but those expectations have come down somewhat since the signing of a peace deal in mid-June. Businesses are meanwhile reporting less uncertainty tied to the trade disruption with the United States, and the outlook for exports improved to well above historic averages on the back of higher commodity prices and demand for artificial intelligence inputs. The central bank is introducing two new indicators to separately track businesses’ expectations for sales activity and prices, with officials noting that some shocks like the Iran war can send those two metrics in opposite directions. This report by The Canadian Press was first published July 6, 2026. PrintEmailRead Later