Bank of Canada expected to hold interest rates at 1.0%

NEW YORK (Forex News Now) – The Bank of Canada is due on Tuesday to determine interest rates, in the day’s major realtime forex news event.

The central bank is expected to decide to hold the rate at 1.0%, according to major online FX trading news outlets, the same mark that was set in October following three successive rate hikes from 0.25%.

In fact, economists forecast no change in rates until at least the second half of 2011. The bank makes a decision on interest rates eight times a year.

The announcement Tuesday is scheduled to be made at 2:00 P.M., GMT; as such it is likely to dominate North American currency market trading today.

The Canadian dollar dropped after coming close to a 3-week high against the US dollar as investors waited for the central bank policy makers to reach their decision.

By around 6:50 A.M., GMT, the loonie was rising slightly: USD/CAD traded at 1.0050, down 0.08% for the day.