The Bank of Canada is expected to announce its interest rate decision this morning, with economists widely expecting the central bank to hold its key rate.
In its last announcement on January 25, the Bank of Canada announced a rate hike of a quarter of a percentage point, bringing its key rate to 4.5%.
At the time, the central bank said it planned to pause interest rate hikes to assess the effects of previous hikes on the economy.
High borrowing costs are expected to slow the economy this year as individuals and businesses cut spending.
Recent economic data shows both a slowdown in the economy and in inflation, although the labor market was still hot in January.
However, if inflation turns out to be more sticky than expected, the Bank of Canada has said it is ready to backtrack and raise rates further.
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