With inflation declining and economic growth coming in unexpectedly flat at the end of 2022, the Bank of Canada is standing pat with its key interest rate following a year of rapid increases to fight inflation. (The Logic)

Talking point: The labour market remains very tight, prices for food and shelter are still high, and inflationary forces from post-lockdown rebounding in China and Russia’s war in Ukraine remain threats, the central bank said. The announcement said it’s still ready to raise interest rates further to throttle price increases if they gain steam again. The Bank of Canada’s decision is in contrast to U.S. Federal Reserve Chair Jerome Powell’s warning in a congressional appearance Tuesday that “ongoing increases in the target range for the federal funds rate will be appropriate” to tame inflation there. Major U.S. asset managers expect the Fed rate to top 5.5 per cent.