Investors will be paying close attention to Tuesday’s Federal Open Market Committee decision on U.S. interest rates.

Economists expect the FOMC to raise the overnight lending rate by 25 basis points to 2.75%.

Rates are expected to climb during the remainder of the year.

Eric Lascelles, an economist with Toronto-Dominion Bank says there is “a further 100 basis points to come over the remainder of 2005.”

Here at home, the focus will be on inflation. On Monday, Statistics Canada releases wholesale trade figures for January.

As well, Bank of Canada Governor David Dodge will address the National Association for Business Economics in Washington. Dodge will speak on Canada’s experience with inflation targeting.

Tuesday brings the release of retail trade figures for January.

Wednesday closes out the week with the Consumer Price Index for February and the Composite Index of Leading Indicators for February.

Economists are calling for a monthly gain in the CPI of 0.4%, with the annual pace of inflation increasing slightly to 2.1%.

Also on Wednesday, Saskatchewan releases its 2005 provincial budget.

There are no release scheduled for Thursday, and markets will be closed on Good Friday.

South of the border, the economic data flow won’t start until Tuesday.

Tuesday sees the release of the producer price index for February, but the bigger news will be a decision on interest rates from the FOMC.

On Wednesday, the Department of Labor releases the U.S. Consumer Price Index for February.

Two lesser pieces of economic news are scheduled for Thursday – advance durable goods orders for February and new home sales for February.

The earnings calendar is light as befits a shortened week.

Bema Gold, Power Corp. and Power Financial report earnings on Tuesday.

ATI Technologies releases its results on Thursday.