Here comes the Bank of Canada...

Stephen Poloz Bank of Canada Reuters/Chris Wattie

The Bank of Canada will announce its latest monetary policy decision at 10 a.m. ET.

The majority of economists surveyed by Bloomberg forecast that the central bank will hold its key rate at 0.75%.

"With little urgency to hike today, we expect the BoC to remain on hold but signal an upbeat message," said Mark McCormick, the North American Head of FX Strategy at TD Securities, in emailed commentary.

The BoC hiked for the first time in seven years at its previous meeting in July, raising its benchmark interest rate by 25 basis points.

The bank is expected to hike one more time this year, said Craig Erlam, senior market analyst at OANDA, in emailed comments.

The September "meeting may come a little soon though, with investors expecting the central bank to remain on hold for now but they will be keen to hear whether expectations of another are correct," Erlam said. "With inflation so far below target, there is good reason for the central bank to leave it at one for now but with the last having also come at a time when inflation was low, it may not act as a deterrent should they wish to go again."

The Canadian dollar was down by 0.2% at 1.2401 against the US dollar at 8:45 a.m. ET.

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