Bank of Canada Likely to Hold Rates Steady Despite Mounting Economic Concerns

Bank of Canada expected to hold interest rates steady this week despite signs of economic weakness
Q4 GDP grew 1% but was boosted by exports; domestic spending and business investment fell
Unemployment is low but payroll data suggests labor market is weakening more than jobs reports show
Inflation dropped to 2.9% in January, back in the BoC’s target range, but bank wants to see more progress
Economists expect rate cuts could start in June if economic weakness persists and core inflation measures decline