(Updates with morning prices)

By Nikhil Sharma

March 18 (Reuters) - Canada's main stock index was

largely unchanged on Tuesday as investors awaited the U.S.

Federal Reserve's outlook on interest rate and economic growth

amid the trade war.

The Toronto Stock Exchange's S&P/TSX composite index

was down 0.2% at 24,731.62 points, after two straight

sessions of gain.

Traders expect the Fed to keep rates unchanged after its

two-day meeting ends on Wednesday. Instead, the market is

focused on policymakers' comments amid concerns that the trade

war could hit global growth.

The OECD said on Monday President Donald Trump's tariff

hikes may put inflationary pressures and drag down growth in

Canada, Mexico and the U.S.

"It must be extremely difficult for central banks to set any

kind of policy in this environment not knowing what the next day

is going to bring in terms of new pronouncements," said Michael

Sprung, president at Sprung Investment Management.

The Bank of Canada had also raised concerns about

inflationary pressures and weaker growth after its policy

meeting last week.

Canada's annual inflation rate showed a surprise jump to

2.6% in February - the first time in seven months that inflation

has crossed the BoC's target of 2%.

There is worry that the February inflation numbers coming in

a particularly uncertain trade environment means Canada could be

"heading into an environment like stagflation", Sprung said.

The information technology sector led declines

with a 2% fall, tracking the 1.8% decline in Wall Street's

tech-heavy Nasdaq index.

On the other hand, materials added 0.9% on the

back of gold's record-breaking run as a renewed conflict in the

Middle East and U.S. trade tariff concerns boosted the safe

haven asset's demand.

Among individual stocks, Definity Financial ( DFYFF ) fell

4.3% after Swiss Re announced a sale of its 10.5%

stake in the Canadian insurer for C$ 655 million ($458.33

million).

($1 = 1.4291 Canadian dollars)