Bank of Canada set to announce interest rate decision. Will it hold? – National

The Bank of Canada is set to announce its interest rate decision Wednesday morning.

It’s widely expected to maintain its key interest rate at five per cent, but economists will be watching for any hints about the timing of upcoming rate cuts.

Forecasters expect the central bank to begin lowering its key rate in June as the economy continues to slow and inflation trends lower.

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Bank of Canada to make rate interest decision, release monetary policy report

High interest rates have slowed demand in the economy as consumers pull back on spending and businesses hold off on investment plans, helping lower inflation.

Canada’s inflation rate was 2.8 per cent in February.

The Bank of Canada will also release its monetary policy report, which will offer its latest projections for inflation and economic growth.