Bank of Canada’s measure for corporate confidence dropped into negative territory for the first time since Q3 of 2016.
The central bank left its interest rate unchanged last month.
The BoC decided not to increase interest rates.
Uncertainty related to US policies has kept business investment lower than where it should be.
The bank is now projecting growth to be just 1.7 per cent in 2019.
Lower growth prospects expected to reinforce Poloz’s strategy of moving very gradually on increases to overnight rate.
Bank of Canada signals it will gradually raise benchmark interest rate from its current level of 1.75% to between 2.5% and 3.5%.
Helping drive the growth was the mining, quarrying and oil and gas extraction sector which rose 0.9 per cent.
The rate is now higher than it’s been in about a decade.
Household debt has been identified as key vulnerability.
BoC concerned with NAFTA implications for inflation.
Effect he believes could have implications for inflation outlooks and even interest-rate decisions.
The rate hasn’t been this high since December 2008.
Bank of Canada governor Stephen Poloz hasn’t touched the rate since he increased it in January, a move that followed increases last year in September and July.
Projections will include fallout from US steel and aluminum tariffs as well as retaliatory measures by Canada and others.