Interest rates will be on the minds of market watchers in the coming week, with the minutes of the U.S. Federal Reserve’s last meeting due Tuesday and a Bank of Canada interest-rate decision scheduled for Wednesday.

Bank of Canada Governor David Dodge has said rates will have to be increased “in the foreseeable future.” While most economists don’t expect an increase from the current 2.5% rate, they differ on whether a hike might come at the bank’s July meeting, or later in the fall.

Also on tap in Canada are reports on employment and corporate profits. Canadian financial markets were closed Monday for the Victoria Day holiday.

On Tuesday, Statistics Canada reports on the leading indicators in April. Economists expect the index to rise 0.2%.

On Thursday, Statistics Canada reports on employment, earnings and hours in March. BMO Nesbitt Burns estimates a rise in average weekly earnings of 1.7% from a year ago.

South of the border, investors will pay close attention to the discussions on inflation and economic growth at the last Fed meeting.

The policy-setting arm of the Fed, the Open Market Committee, will release the minutes of its May 3 meeting on Tuesday afternoon.

Also Tuesday, the U.S. National Association of Realtors reports on existing home sales in April. Economists expect annualized sales of 6.9 million units.

On Wednesday, the U.S. Commerce Department reports on durable goods orders in April. Economists expect an increase of 1.1%.

Separately, Commerce reports on new home sales in April. Economists expect annualized sales of 1,345,000 units.

On Thursday, Commerce reports preliminary figures on the gross domestic product in the first quarter. Economists expect annualized growth of 3.7%.

As well, the U.S. Labor Department reports on initial jobless claims in the week ending May 21. Economists expect 325,000 new claims.
Annual meetings

On Friday, the U.S. Commerce Department reports on personal income and spending in April. Economists expect increases of 0.6% and 0.8%, respectively.

As well, the University of Michigan releases its revised index of consumer sentiment for May. Economists expect a reading of 86.

On the earnings front, Canada’s biggest banks will report on their second-quarter results.

Bank of Montreal and CIBC report on Wednesday, National Bank of Canada and Toronto Dominion Bank report on Thursday, and Laurentian Bank and Royal Bank of Canada report on Friday.