The Globe and Mail reports in its Thursday edition that the Bank of Canada, by holding its key rate steady at 4.5 per cent on March 8, became the first major central bank to pause monetary policy tightening this year. The Globe's Mark Rendell writes that BOC officials have said the pause in rate hikes is "conditional" and they are set to raise interest rates again if inflation does not come down as rapidly as expected. Markets have calmed down in recent days. However, even if the latest turmoil blows over, the economic outlook has darkened since the March 8 rate decision. Financial sector concerns tend to seep into the broader economy, as banks tighten their lending standards and consumers get nervous. Members of the governing council are looking for a decline in short-term inflation expectations and core inflation measures. Inflation is decelerating faster than expected. On Tuesday, Statistics Canada reported that the Consumer Price Index rose 5.2 per cent year-over-year in February, down from 5.9 per cent in January and below Bay Street estimates of 5.4 per cent. The central bank expects inflation to fall to about 3 per cent by the middle of the year and return to its 2-per-cent target by the end of 2024.