Bank of Canada Likely to Hold Rates Steady But Economy Struggles Under Weight of Earlier Hikes
• Bank of Canada expected to keep interest rates steady at 5% this week, but unlikely to provide clarity on future rate moves • Inflation showing signs of moving in right direction, dropping to 3.1% in October • Economy struggling under weight of high borrowing costs, GDP shrank 1.1% in Q3 • Market speculation shifted from further rate hikes to potential rate cuts beginning in March 2023 • Wage growth still high at 4.8% annually in November, other inflationary pressures remain