Canadians aren’t taking much comfort from the central bank’s latest policy moves.
An index of consumer confidence calculated by Nanos Research has dropped six straight weeks since Bank of Canada Governor Stephen Poloz cut interest rates on Jan. 21, calling it “insurance” against the oil-price shock. The reading for the week ended Feb. 27 declined to 53.6, the lowest in almost two years.
Growing consumer pessimism may be an unintended consequence of Poloz’s rate move, some economists such as Bank of Montreal’s Doug Porter have said, prompting households to keep a lid on spending. Poloz’s next rate decision is Wednesday, with swaps trading suggesting a 28 percent chance of another rate cut.
Every week, Nanos Research asks Canadians for their views on personal finances, job security, the outlook for the economy and where real estate prices are headed. This is what the survey data, which is compiled for Bloomberg News, captured for the week through Feb. 27:
*The Bloomberg Nanos Canadian Confidence Index — a national composite score based on the four survey questions — declined to 53.6, the lowest since May 2013. The average over the past 12 months is 58.2.
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