07:31 AM EDT, 09/15/2025 (MT Newswires) -- All eyes are on the Bank of Canada's policy decision and on Wednesday, said Bank of Montreal (BMO).

Despite ongoing elevated uncertainty around the outlook for the Canadian economy and inflation, the persistent output gap and deteriorating labour market will likely prompt a 25 bps rate cut by the BoC at the September meeting, noted the bank. BMO will listen to the tone from Governor Tiff Macklem to assess whether the BoC is keen on cutting in back-to-back meetings and for any clue on how stimulative it would like policy to be.

The bank continues to believe there is scope for the BoC to shave rates down by 75 bps from here, and the market has fully priced in 50 bps of easing by March 2026.

Investors will also get data on Canadian manufacturing sales and wholesale trade for July at 8:30 a.m. ET on Monday, added BMO.

The Canadian dollar (CAD or loonie) starts the week at $1.38/USD (72.3 US cents), according to the bank.