07:23 AM EST, 01/29/2026 (MT Newswires) -- The Bank of Canada fully met expectations on Wednesday, holding policy rates at 2.25%, affirming its comfort with the current policy setting, and signaling no need for a shift unless something changes its outlook of modest economic growth and inflation holding "close to the 2% target," said Bank of Montreal (BMO).

The bank expects rates to remain stable all year, though given ongoing trade-policy risks, BMO suspects the BoC is more open to cutting than hiking.

Canada will release the international merchandise trade for November at 8:30 a.m. ET on Thursday, pointed out the bank. The goods trade deficit is expected to hold at $0.6 million in November, benefiting from higher-valued natural gas, silver and precious metals, but weighed down by soft exports to the United States.

Still, trade looks to add meaningfully to Q4 gross domestic product growth, keeping the economy moving slightly forward, stated BMO.

Also at 8:30 a.m. ET on Thursday, the job vacancy rate in the SEPH data for November is out after reaching a near nine-year low of 2.6%.

The Canadian dollar (CAD or loonie) is consolidating recent gains against the US dollar (USD) at C$1.355 (US$0.738), added the bank.