Worst-case scenario may be avoided as business confidence rises: BoC – National [Video]

Trade-sensitive businesses are telling the Bank of Canada that they’re broadly less worried about their “worst-case tariff scenarios” coming true compared to earlier in the year, a senior central bank official said Thursday.

Deputy governor Sharon Kozicki was speaking to the C.D. Howe Institute in Toronto a day after the Bank of Canada held its benchmark interest rate steady at 2.75 per cent.

Bank of Canada governor Tiff Macklem on Wednesday said ongoing high levels of uncertainty tied to the trade dispute with the United States are a big factor keeping the central bank on hold while it waits for more information on the looming economic and inflation impact.

Kozicki spoke about how the Bank of Canada is leaning more on non-traditional sources of data to make those decisions, including surveys of businesses and consumers.

Heading into Wednesday’s rate decisions, she said the central bank’s consultations with businesses in sectors particularly affected by trade were informative.

While those …