FINANCIAL MARKETS

TORONTO — Canada’s main stock index rose moderately Tuesday as investors awaited a highly-anticipated rate decision from the Bank of Canada.

The Toronto Stock Exchange’s S&P/TSX composite index climbed 43.86 points to 15,149.14, helped by gains in the metals, energy and material sectors.

Bank and insurance stocks, which mostly benefit in a higher-interest rate environment, also finished the session ahead.

In currencies, the Canadian dollar dipped 0.19 of a U.S. cent to an average trading price of 77.40 cents US.

All eyes will be on the loonie Wednesday as expectations run high that Canada’s central bank will raise its key interest rate for the first time in nearly seven years amid signs of an economic recovery.

Speculation has been swirling for several weeks amid repeated hints from Bank of Canada governor Stephen Poloz that Canada’s economy has strengthened sufficiently following a crash in oil prices.

The Canadian dollar climbed quickly as a result last week, but has since pulled back slightly in the past two days.

Peggy Bowie, a senior trader at Manulife Asset Management, says if the rate hike happens as anticipated, the loonie will likely “see some sideways action” because expectations have already been baked in.

Otherwise, for the news to have a dramatic impact on the dollar, investors will have to be surprised by either a larger-than-expected rate increase or no increase at all.