This week promises to be a busy one on the economic front, with the Bank of Canada’s decision on interest rates taking centre stage. Opinions are mixed as to whether Governor David Dodge will raise interest rates on Tuesday morning.

“The Bank of Canada’s decision is far from a certainty, since the economic consequences of raising rates now as opposed to in June will be minimal,” says CIBC World Markets. “We lean towards a quarter-point hike on Tuesday, if only to send a token of support to the currency. Most, but not all, of a quarter-point hike is priced into the curve.”

RBC Financial Group economists are more convinced that rates will rise on Tuesday, saying, “It is now widely believed that the Bank will increase the overnight target rate by 25 basis points to 2.25%.”

TD Bank says that the decision is far from a slam-dunk. “We continue to believe that the odds are still titled towards the Bank opting to stand pat next Tuesday — but only barely so. If the window is open and the optics are good, why not take the leap?”

BMO Nesbitt Burns says there are powerful reasons for the Bank of Canada to stay on hold for now. But it admits that, “The Bank may view this as a golden opportunity to show its independence.”

The calendar of economic releases would be busy even with the rate decision. On Wednesday, the February survey for manufacturing and merchandise trade will be released. The February auto sales report is due on Thursday followed by the February wholesale trade survey on Friday. “Next week’s batch of statistics is expected to prolong the streak of robust Canadian data,” says BMO. Although, “The slate of data releases will follow the Bank of Canada’s rate decision, and will thus have little bearing on near-term policy.”

In the U.S., February business inventories, March housing starts and the Consumer Price Index are out on Tuesday. On Wednesday, the February reading of U.S. trade numbers will be released, followed by Thursday’s initial jobless claims, the Philly Fed index for April and the leading indicator for March.

CIBC says, “In the U.S., a very busy week for earnings reports is likely to overshadow news on the economic front. In terms of data, the spotlight will be on CPI, where a now-fading energy price spike will hit hard. But the core rate should remain benign, minimizing the market’s response.”

In Canada, some big names will be reporting earnings next week, too. Fairmont Hotels and Resorts leads the way on Monday, along with Sears Canada Inc. Alcan reports on Tuesday, along with Jean Coutu Group. Inco and IBM report on Wednesday. On Thursday, its time to hear from Aliant Inc., Nokia, Nortel and TransAlta Corp. Falconbridge is fit for Friday.