07:50 AM EST, 01/28/2026 (MT Newswires) -- The Bank of Canada will release its policy decision and Monetary Policy Report (MPR) at 9:45 a.m. ET on Wednesday, followed by the press conference with Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers 45 minutes later, said Bank of Montreal (BMO).

The bank noted that the BoC is widely expected to keep rates steady, the second consecutive meeting on hold, after a cumulative 100 bps of cuts in 2025. After a strong run, the economic data have softened since the December meeting.

However, conditions haven't changed enough to prompt a shift from the BoC, stated BMO. At the prior meeting, Governor Macklem made it clear that the BoC held a neutral stance, and it would take a material change to prompt a move. That was later corroborated in the Summary of Deliberations.

On balance, Governor Macklem looks to retain his neutral bias, potentially with a slight dovish tilt, amid slowing core inflation and persistent uncertainty, pointed out the bank. The growth and inflation projections in the MPR will likely have a cautious lean as USMCA trade renegotiations loom large.

The US dollar (USD) is firmer (BBDXY +0.29%) after hitting multiyear lows on Tuesday, with the Canadian dollar (CAD or loonie) also a bit firmer (CAD per USD -0.03%), added the bank.