The International Monetary Fund is telling the Bank of Canada to hold off on monetary tightening until the economy performs better.

The IMF says in a new report on Canada that the economy slowed in 2012 and will underperform again in 2013 with sub-2% growth.

The Washington-based international financial institution says the best case scenario suggests growth should perk up in late 2013, at which time higher interest rates might be warranted.