(Updates with analyst comments, mid-morning moves)

By Twesha Dikshit

Sept 17 (Reuters) - Canada's benchmark stock index rose

on Wednesday after the Bank of Canada lowered its base rate to a

three-year low, as widely anticipated, while investors awaited

U.S. Federal Reserve's policy decision due later in the day.

The S&P/TSX composite index added 0.3% to

29,406.07 points by 09:54 ET (1354 GMT), a few points shy of

Monday's record high.

The BoC resumed its rate-lowering cycle after nine months

following a unanimous vote, reducing the rate by 25 bps to 2.5%,

citing a weak jobs market and fewer concerns over inflationary

pressures.

"The bank cutting by a quarter point is widely expected. It

would have to be something meaningfully different than that to

really nudge the market one way or the other," said Josh Sheluk,

a portfolio manager at Verecan Capital Management.

"You'll have to see either meaningful language to suggest

further cutting is imminent or some surprise more hawkish

sentiment to move the market."

The central bank had aggressively reduced rates to 2.75% in

March from 5% in June last year, a 225-bps cut in nine months,

but held steady since on U.S. tariff uncertainty.

Markets currently expect a 52.5% chance of a rate cut in

October, according to LSEG data.

The spotlight now will be on the Fed's key rate decision,

due at 14:00 ET, with a quarter-point reduction already priced

in and investors on the hunt for clues on further easing.

Consumer stocks rose as Aritzia ( ATZAF ) and

Dollarama ( DLMAF ) added 1.3% and 0.9%, respectively.

The real estate index added 0.5%, with 12 out of

13 sectors in the green.

Conversely, technology shares were under pressure as

heavyweight Celestica ( CLS ) dropped 3.2%.

The Canadian dollar steadied at about C$1.37 to the

U.S. dollar, or 72.67 U.S. cents, after the rate cut. It was

down 0.2% on Wednesday.