Bank of Canada to hold rates steady as inflation eases and economy skirts recession

The Bank of Canada (BoC) is expected to hold its key overnight rate steady at 5% on Wednesday, economists said, even though data have shown inflation easing and economic growth sputtering. Inflation has stayed stubbornly above the BoC’s target of 2% for three years, and despite rates being at a 22-year high, Canada’s economy has so far avoided recession and may be picking up steam. “The bank (BoC) has been quite prudent and our sense is that we won’t see a rate reduction until mid-year, until about June or July,” said Pedro Antunes, chief economist at Conference Board of Canada, an independent think tank.