[1/2] Bank of Canada Governor Tiff Macklem holds a news conference at the Bank of Canada, amid the coronavirus disease (COVID-19) outbreak, in Ottawa, Canada, June 22, 2020.
"We expect the Bank of Canada to be the first G10 central bank to hold rates," said Jay Zhao-Murray, a forex analyst at Monex Canada.
Money markets expect the policy rate to be left on hold on Wednesday but are pricing in another tightening by September.
"Look for the Bank of Canada to point to slowing GDP growth and inflation when justifying its decision to maintain the level of rates," said Royce Mendes and Tiago Figueiredo, Desjardins economists, in a note.
"The central bank is unlikely to do much to endorse the view that further rate hikes will be necessary," they said.