Canada's Inflation Rate Drops to Slowest Pace in 13 Months, Supporting Rate Pause

Canada's inflation rate slowed to 5.2% in February, its lowest level in 13 months, backing up the central bank's plans to hold off on further interest rate hikes. The Bank of Canada left its key overnight interest rate on hold at 4.50% earlier in March, and repeated that it would pause further rate increases if inflation came down in line with its forecasts, reaching its 2% target next year. Money markets largely see the central bank keeping rates unchanged at its next meeting on April 12, but due in part to the banking turmoil, they now expect the central bank's next move to be a cut later this year.