ottawashortterm inflation expectations among businesses remain elevated but have softened relative to the prior quarter according to the latest quarterly survey of companies by the bank of canada the businessoutlook survey released monday indicated business confidence has deteriorated but remains in positive territory businesses expect sales for expand at a slower pace over the next 12 months as the combination of higher interest rates and elevated inflation begin to weigh on economic activity according to the survey some businesses linked to housing activity expect higher interest rates to hurt their sales the central bank said of the survey results conducted between midaugust and early september after experiencing a sharp recovery from the pandemic other firms now anticipate a sloweralthough still healthypace of sales growth the business survey along with another measuring consumer expectations represent some of the last pieces of data the bank of canada will examine before officials issue the latest ratepolicy decision the central banks next rate decision is scheduled for oct 26 and most economists predict a halfpercentage point increase which would take the bank of canadas main lending rate to 375 the benchmark rate began the year at 025