Bank of Canada Expected to Hold Rates Steady But Signal Possible Cuts Ahead Amid Slowing Economy
- The Bank of Canada is expected to keep interest rates steady at 5% at its meeting this week, but economists will look for signs of when rate cuts could begin.
-Inflation picked up slightly in December, but the Bank of Canada likely won't respond to small bumps and will focus on overall downward trends.
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The bank is projected to start cutting rates as early as this spring to avoid an economic downturn.
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Higher rates have slowed consumer spending, contributing to a weaker economy and job market.
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The Bank of Canada will issue an updated economic forecast and inflation projections on Wednesday.