The Bank of Canada is expected to raise interest rates for the eighth consecutive on Wednesday, but economists say it's likely the last rate hike for now.
Most commercial banks are forecasting the central bank will raise its key interest rate by a quarter of a percentage point, bringing it to 4.5 per cent.
Desjardins economist Royce Mendes says the central bank will justify the rate hike by pointing to the red hot labour market and sticky underlying inflation pressures.
Last month, the unemployment rate ticked down to 5 per cent as the economy added jobs, suggesting the labour market is still tight.
Although the annual inflation rate slowed to 6.3 per cent in December, the less-volatile core-inflation reading edged down only slightly.
The Bank of Canada will also publish its quarterly monetary policy report on Wednesday, providing updated forecasts for economic growth and inflation.