The week’s key reports will likely be the Bank of Canada interest-rate decision on Tuesday and a monetary policy report update Thursday.

Most observers predict the central bank will leave interest rates unchanged at 2.5%.

Investors will be paying close attention to Thursday’s report for clues on the timing of rate hikes later in the year.

A robust June jobs report has heightened the chance that interest rates may rise in September.

“Expect Thursday’s monetary policy report update to reiterate the threat of higher rates ahead,” said Warren Lovely, an economist at CIBC World Markets, in a note.

The flow of economic news starts Monday, when Canada Mortgage and Housing Corp. CMHC is expected to report 222,500 annualized housing starts for June.

Separately, Statistics Canada reports on investment in non-residential construction in the second quarter.

As well, the Conference Board of Canada releases its Canadian Outlook Summer 2005.

On Tuesday, StatsCan reports on the new-housing price index for May. Economists expect an increase of 0.6%.

On Wednesday, the statistical agency reports on Canada’s international merchandise trade in May. Economists expect a surplus of $4.7-billion.

On Thursday, StatsCan issues its manufacturing survey for May. Economists expect a 0.4-per-cent increase in shipments.

The flow of economic data south of the border doesn’t start until Wednesday when the U.S. Commerce Department issues its report on international trade for June. Economists expect a deficit of US$57 billion.

Thursday brings the release of the consumer price index for June. Economists expect the U.S. Labor Department to report a 0.3-per-cent increase.

Separately, Labor reports on initial jobless claims for the week ending July 9. Economists expect 323,000 new claims.

The U.S. Commerce Department reports on retail sales in June. Economists expect a rise of 0.9%.

Friday is another heavy day. The U.S. Commerce Department reports on business inventories in May. Economists expect a rise of 0.3%.

The U.S. Labor Department reports on the producer price index in June. Economists expect an increase of 0.5%.

New York Federal Reserve Bank releases the Empire State index on manufacturing activity in July. Economists expect a reading of 9.

The U.S. Federal Reserve Board reports on industrial production and capacity utilization in June. Economists expect production to increase by 0.4%, and the utilization rate at 79.6%.

And the University of Michigan releases its preliminary consumer sentiment index for July. Economists expect a reading of 94.8.

In earnings news, General Electric Co. will be the second Dow component to release second-quarter earnings.

PepsiCo Inc., Apple Computer Inc., Advanced Micro Devices Inc., and UnitedHealth Group Inc. are among the other U.S. companies set to release their results.

In Canada, investors will hear from Astral Media Inc., CanWest Global Communications Corp., Chum Ltd., Cogeco Inc., CoolBrands International Inc., Corus Entertainment Inc. Corby Distilleries Ltd., and Nexen Inc.