OTTAWA—The Bank of Canada is widely expected to hold its benchmark interest rate steady in a policy announcement on Wednesday as officials wait for more certainty on the outcome of North American Free Trade Agreement negotiations.

Economists from 10 of the 11 primary dealers of Canadian government securities told The Wall Street Journal they anticipate the Bank of Canada will keep its key rate at 1.25% this week. A majority of those surveyed said they expect at least one more interest rate increase during the second half of...