OTTAWA—The Canadian economy contracted slightly in November, reinforcing expectations that the Bank of Canada will keep interest rates on hold over the coming months.

Canada’s gross domestic product, or the broadest measure of goods and services produced in an economy, fell 0.1% in November from the previous month to a seasonally adjusted 1.944 trillion Canadian dollars ($1.474 trillion), Statistics Canada said Thursday. The result matched market expectations for a 0.1% decline, according to economists at Royal Bank of Canada.

On a one-year basis, the Canadian economy expanded 1.7% in November.

“It’s becoming clear that Canada’s economy lost momentum towards the end of last year,” said National Bank of Canada economist Krishen Rangasamy. Fourth-quarter growth is now tracking around 1% annualized, he said, even if there is a small rebound in December.

Thursday’s GDP report contributed to expectations that the Bank of Canada will keep its key interest rate on hold during the first half of this year. In the central bank’s most recent rate decision, in which it left its policy rate unchanged at 1.75%, officials said a recent drop in oil prices would materially affect the outlook for growth in 2019.