Bank of Canada to announce latest interest rate decision Wednesday

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The Bank of Canada is set to announce its interest rate decision this morning, with economists widely expecting the central bank to hold its key rate.

At its last announcement on Jan. 25, the Bank of Canada announced a quarter percentage point rate hike, bringing its key rate to 4.5 per cent.

At the time, the central bank said it plans to take a pause from raising interest rates to assess the effects of previous hikes on the economy.

Elevated borrowing costs are expected to slow the economy down this year as people and businesses pull back on spending.

Recent economic data shows both the economy and inflation slowing, though the labour market was still running hot in January.

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