Bank of Canada Expected to Hold Rates as Surveys Point to Slowdown

OTTAWA—Economists widely expect the Bank of Canada on Wednesday to keep its main interest rate unchanged for a second straight decision, as inflation continues to cool, and surveys of businesses and households suggest a slowdown is in the cards.

The Bank of Canada issues its third policy decision of the year Wednesday, and all 13 economists surveyed by The Wall Street Journal said they expect the target for the overnight rate to remain at 4.50%. More than half the economists—seven—said they expected the Bank of Canada to keep…