07:35 AM EST, 12/10/2025 (MT Newswires) -- There is little mystery about what the Bank of Canada will do on Wednesday, said Bank of Montreal (BMO).

Three strong job reports will likely send the BoC back to the sidelines after a couple of rate trims in the fall, noted the bank.

With underlying inflation still tracking a good half a percentage point above the target, Canada's central bank will likely more clearly signal intentions to remain on hold for the foreseeable future, stated BMO.

The October policy statement said that barring an economic surprise, the policy rate was "at about the right level" to reach the inflation target.

The BoC will likely reinforce this message in its rate announcement at 9:45 a.m. ET and in Governor Tiff Macklem's press conference at 10:30 a.m. ET on Wednesday, according to MUFG.

While the bank suspects the BoC is done easing, MUFG doesn't expect rates to increase -- and only modestly -- until 2027, after the trade policy clouds part.