canada’s economy geared down as expected in the first quarter reinforcing the central bank’s decision to stop raising interest rates preliminary data suggest gross domestic product contracted 01 in march led by decreases in retail wholesale and mining sectors statistics canada reported friday in ottawa that followed a 01 expansion in the previous month slightly weaker than expectations for 02 growth in a bloomberg survey overall the monthly gains point to annualized growth of 25 in the first quarter according to an initial estimate from the statistics agency though it will likely be revised that’s roughly in line with the 23 pace projected by the bank of canada earlier this month bonds rallied pushing the yield on canada’s twoyear benchmark bond down to 3684 as of 844 am ottawa time the numbers will give governor tiff macklem and his officials some confidence as they look for evidence that monetary policy is sufficiently restrictive to bring inflation back to the central bank’s 2 target at the end of 2024 signs of cooling growth employment and underlying price pressures will keep them on the sidelines during their deliberations ahead of the april 12 decision to hold the benchmark overnight rate at 45 policymakers considered raising borrowing costs higher citing strongerthanexpected growth and stillelevated core inflation but they opted to stand pat expecting that pressures on the labor market and consumer prices will ease in the months ahead “the shaky march data will reinforce the bank of canada’s decision to hold rates steady at its last policy announcement” royce mendes head of macro strategy at desjardins securities said in a report to investors “that said it’s not yet enough to move central bankers to completely close the door to future rate increases” in february the public sector expanded 02 up for the thirteenth straight month the construction industry grew 03 while wholesale retail and manufacturing declined by 13 05 and 01 respectively