The Financial Post reports in its Thursday edition that the Bank of Canada held its key overnight interest rate at 5 per cent amid a domestic economy that is slowing and an unemployment rate ticking up. The Post's Barbara Shecter writes that economists were expecting the hold, and many say that if economic trends continue, the Bank of Canada will begin lowering interest rates by next spring after swift and steep increases over the past 18 months. James Orlando, a senior economist at TD Bank, said an interest rate cut is likely, but not until April. "With inflation still above three per cent, we get why the BOC isn't ready to declare victory," he wrote in a Wednesday note. "Instead, the BOC seems like it is preparing to sit on the sidelines for the next couple of months while maintaining its cautious rhetoric." Andrew Dicapua at the Canadian Chamber of Commerce said businesses would take some comfort from the latest rate decisions, but he cautioned against optimism about rate cuts, particularly if they are expected before the second quarter. Complicating the timing of cuts are persistence of core inflation, strength of the housing market, "and whether first-quarter GDP continues negative growth," Mr. Dicapua said.