Bank of Canada to keep rates on hold as stubborn inflation delays cut

The Bank of Canada is expected to leave its overnight key interest rate unchanged at its meeting on Wednesday, but stubborn inflation has prompted markets to delay the schedule for the first interest rate cut in almost four years. After the previous three months showed prices falling or stabilizing compared to last year, headline inflation rose in December, accelerating to 3.4% from 3.1%, and the closely watched core inflation data also surprised in the upward trend.