The Bank of Canada is expected to hold its key overnight lending rate at 2.25% this week.

The BoC will announce its decision on Wednesday as Prime Minister Mark Carney’s government continues to seek a new Canada-U.S. trade deal. However, the U.S. Federal Reserve is expected to make another rate cut on Wednesday.

Economists are expecting BoC Governor Tiff Macklem to toe the line after the Canadian central bank made four reductions this year, according to multiple reports. The BoC indicated in its last rate decision that it could lean towards holding rates because it was satisfied with how the economy was performing due to considerable uncertainty due to trade tensions with the U.S.

Meanwhile, LSEG Data & Analytics anticipates that a hold will receive 93% support from central bank officials during the BoC’s meeting this week.

Macklem has warned that BoC rate policy may change to offset economic shocks rather than follow conventional trends. In October, the BoC resumed its practice of issuing an economic forecast with its rate decision after taking the rare step of not issuing an outlook for a number of months.

Pictured: Bank of Canada Governor Tiff Macklem

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