MNI BRIEF: Canadian Firms' Price Plans At Fresh 3 Yr Low- CFIB

Planned wage and price increases at Canadian firms declined to fresh three-year lows this month according to the country's leading small business group, the kind of stability the central bank has sought as it weighs how fast to keep cutting interest rates.

The Canadian Federation of Independent Business said members plan to raise prices 2.3% on average over the next year, down from 2.4% in August and 2.7% in July. Expected wage increases slowed to 2.3% from 2.5%. The CFIB sample size is much larger than the BOC's quarterly business surveys.

Investor bets are building for a half point cut on Oct. 23 after three quarter-point reductions. Governor Tiff Macklem says he can adjust the pace based on how inflation risks evolve. (See: MNI INTERVIEW: BOC Needs Faster Cuts, Labour Congress Says)