The Globe and Mail reports in its Tuesday edition that according to two surveys published by the Bank of Canada on Monday, the previously pessimistic economic sentiment among Canadian businesses and consumers is improving. The Globe's Mark Rendell writes that fewer people anticipate a recession and many are expecting a drop in interest rates over the next year. Consumers are experiencing significant levels of financial stress, while businesses are reducing their investment plans due to the high costs of borrowing and weak demand. This trend is concerning, especially considering the BOC has already declared low labour productivity and insufficient business investment as a national "emergency." The two quarterly surveys are among the last bits of data the BOC will get ahead of its next interest-rate decision on April 10. Crucially for the BOC, the surveys showed business beliefs about future inflation are moderating, although consumer expectations remain stubbornly elevated. What companies and households think about inflation can feed into price-setting and wage-bargaining decisions, so the BOC is keeping a close eye on expectations as it gauges when to start lowering interest rates from the current two-decade high.