Although Canadian and U.S. financial markets will be closed on Monday in observance of Labour Day, investors will be looking ahead to Wednesday when the Bank of Canada announces its interest rate decision.

Economists are mixed as to whether the central bank will stand pat on interest rates.

In July, the bank said interest rates will rise in the near term, leading the market to price in a 25-basis-point increase to 2.75%.

However, the damage caused by hurricane Katrina has led some analysts to predict the U.S. Federal Reserve will pause in its campaign of measured rate increases.

That may put pressure on the the Bank of Canada to maintain Canadian interest rates have remained at 2.5%.

Also Wednesday, Statistics Canada releases building permit data for July. Economists expect a rise of 0.8%.

As well, the Purchasing Management Association of Canada and the Richard Ivey School of Management release their purchasing managers index for August. Economists expect a reading of 58.

On Thursday, StatsCan reports on the industrial capacity utilization rate in the second quarter. Economists expect a rate of 86.6%.

Separately, the government agency reports on the new housing price index in July. Economists expect a rise of 0.5%.

On Friday, StatsCan issues labour force survey: economists expect Statistics Canada to report the unemployment rate in August unchanged at 6.8%. Employers are expected to create 19,000 new jobs.

Separately, the statistical agency reports labour productivity in the second quarter. Economists expect a rise of 0.2%.

Canada Mortgage and Housing Corp. announces housing starts in August. Economists expect an annualized figure of 230,000.

Bank of Canada Governor David Dodge attends a panel discussion in Calgary on World Monetary Policy.

South of the border, the U.S. Institute for Supply Management releases its services index for August on Tuesday. Economists expect a reading of 60.2.

On Wednesday, the U.S. Federal Reserve Board publishes its Beige Book, a compilation of anecdotal information on current economic conditions in its 12 districts.

On Thursday, the U.S. Labor Department reports on initial jobless claims for the week ending September 3. Economists expect 315,000 claims, down from 320,000 the previous week.

Meanwhile, the U.S. Commerce Department reports on wholesale inventories in July. Economists expect an increase of 0.5%.

Earnings season has mostly wound down.

Sobeys Inc. reports first-quarter, 2006, results on Wednesday.

On Thursday, Agricore United reports third-quarter results. Empire Co. reports first-quarter, 2006, results. Open Text Corp. reports fourth-quarter results. MDS Inc. reports third-quarter results, and Sears Holdings Corp. reports second-quarter results.