OTTAWA – The Bank of Canada is prepared to announce its final interest rate decision of the year today, generating significant interest among economists and market observers.

In its previous announcement in October, the central bank made a notable move by reducing its benchmark interest rate by 25 basis points, bringing it down to 2.25 percent. This decision was influenced by various economic indicators and trends, which the bank closely monitors.

Recent market data suggests that a majority of economists are anticipating that the Bank of Canada will maintain the benchmark rate at its current level. This expectation is largely shaped by recent positive developments in economic trends that show signs of improvement.

One key indicator is the jobs data released last week, which revealed a significant reduction in the unemployment rate. The unemployment rate fell by 0.4 percentage points to 6.5 percent in November, indicating an encouraging trend in the labor market. Furthermore, the economy demonstrated an unexpected annualized growth of 2.6 percent in the third quarter, further supporting the view of an improving economic landscape.

Another crucial aspect influencing the Bank of Canada's decision is inflation. The headline inflation rate for October was reported at 2.2 percent, a decline from 2.4 percent in September. While this decrease is positive, there remain areas of concern regarding inflationary pressures that the bank needs to consider.

On the international front, the U.S. Federal Reserve is also set to announce its interest rate decision on the same day. Market analysts suggest a greater likelihood that the Federal Reserve will move to lower interest rates in the United States, contrasting the expected stability of the Bank of Canada's rates.

As the news unfolds, market participants will closely scrutinize the Bank of Canada's official announcement and the implications it may have on the Canadian economy and monetary policy moving forward.