The Bank of Canada expected to hold line on interest rates when it makes it’s announcement on Tuesday, meanwhile U.S. markets are closed Monday.

Also Monday, Statistics Canada releases new motor vehicle sales figures for November, 2006. A 3% increase from the previous month is expected.

On Tuesday, the Bank of Canada is expected to announce it will keep its target overnight rate unchanged at 4.25%.

On Thursday, Statistics Canada releases its manufacturing survey for November, 2006. Economists forecast a 0.7% increase from the previous month.

Meanwhile, the Bank of Canada releases its monetary policy report update.

South of the border

Markets in the United States are closed in Monday observance of Martin Luther King Jr. Day.

On Wednesday, the U.S. Department of Labor reports on the producer price index for December, 2006. A 0.5% increase from the previous month is expected.

Separately, the U.S. Federal Reserve Board releases data on capacity utilization and industrial production for December, 2006. Economists forecast a utilization rate of 81.7%, down slightly from 81.8% a month earlier, and production growth of 0.1%, compared with a 0.2% gain.

On Thursday, the U.S. Department of Labor reports on the consumer price index for December, 2006. Economists forecast a year-over-year increase of 2.5%, compared with 2% the previous month.

Separately, the U.S. Commerce Department releases data on housing starts and building permits for December, 2006. Economists forecast 1.56 million starts and 1.52 million permits, both annualized.

Corporate earnings

Fourth quarter earnings season is in full swing. Among the companies scheduled to report are: Danier Leather Inc.; Intel Corp.; U.S. Bancorp; Apple Computer Inc.; JPMorgan Chase & Co.; Mellon Financial Corp.; Southwest Airlines Co.; Corel Corp.; Merrill Lynch & Co. Inc.; Motorola; and Citigroup Inc.