By Julie Gordon and David Ljunggren OTTAWA (Reuters) – The Bank of Canada announced a smaller-than-expected interest rate hike on Wednesday and made clear more increases were still needed, even as it forecast that the economy could soon slip into a slight recession. The central bank increased its policy rate by half a percentage point to 3.75%, a 14-year high but coming up short on calls for another 75 basis points move. It has lifted rates by 350 basis points since March, one of its fastest tightening cycles ever. The bank separately said growth would stall later this year and early next year…