OTTAWA, Jan 31 Reuters Canada39;s economy grew more than expected in November and likely avoided a technical recession in the second half of last year, data showed on Wednesday, as the central bank mulls when to start reducing 22year high interest rates.

Gross domestic product expanded 0.2 in November from the previous month, Statistics Canada said, faster than a 0.1 forecast by analysts polled by Reuters. Growth rebounded slightly after stalling for three straight months.

The economy also likely expanded by 0.3 in December, which would mean annualized growth of 1.2 in the fourth quarter, according to a preliminary estimate. In the third quarter, Canada39;s GDP contracted by 1.1.

So the economy likely avoided a technical recession defined as two consecutive quarters of contraction in the second half of last year.

The Canadian dollar was trading nearly unchanged at 1.34 per U.S. dollar, or 74.63 U.S. cents, after clawing back an earlier decline.

The Bank of Canada BoC trimmed its growth forecasts for 2023 and 2024 last week. For the fourth quarter ended in December, the central bank had projected zero growth compared to an earlier forecast for a 0.8 gain.

The November growth and December39;s flash estimate show that the central bank39;s efforts to bring down inflation to its 2 target have not dragged the economy into recession, at least not yet. BoC Governor Tiff Macklem has said he does not expect the economy to dip into recession.

The central bank has kept its…