Canada’s inflation rate slowed more than expected in February to its lowest level in 13 months, official data showed, supporting the Bank of Canada’s plan to delay further interest rate hikes.

Annual inflation fell to 5.2% from 5.9% in January, the biggest monthly decline in nearly three years, Statistics Canada reported.

Excluding food and energy, underlying prices rose 4.8% on an annualized basis, compared to 4.9% in January.

The Bank of Canada kept its overnight interest rate at 4.50% earlier this month, where it reiterated that it would suspend further hikes if inflation fell in line with its forecast and reached its target of 2% the following year.

The inflation outcome will keep the Bank of Canada on hold for the next meeting, assuming the banking system remains calm,” said Michael Greenberg, portfolio manager at Franklin Templeton Investment Solutions.

The failure of two US regional banks and the takeover of Credit Suisse by UBS, through the Swiss government, have highlighted the strains on the global banking sector that central banks must take into account when setting their policies .

Stephen Brown, chief North American economist at Capital Economics, said the February reading suggested inflation averaged 5.2% in the first quarter.

Money markets expect the central bank to keep rates unchanged at its April 12 meeting but, in part because of the banking turmoil, now expect it to cut them by the end of April. the year.