The Bank of Canada is expected to keep interest rates unchanged at 4.25% when it announces its decision at 1300 GMT on 29-May-2007. It has kept interest rates at this level since May last year, when it had hiked rates by 25Bps. This is the fourth time it is meeting in this year, out of the total eight times, which it meets in any given year. The Bank is, however, expected to maintain a hawkish bias on inflation in the speech which accompanies the decision, as there has been a rapid hike in the Canadian CPI recently. Canadian inflation has been running in the upper half of the target zone of inflation of 1% and 3%. ... (full story)