CANADA STOCKS-TSX boosted by tech, energy shares; central bank meetings in focus

By Rashika Singh and Nivedita Balu

March 17 (Reuters) - Canada's benchmark index rose on Tuesday supported by gains in technology and energy stocks, as investors awaited key central bank decisions for clues on the monetary policy outlook in Canada and the U.S. and tensions in the Middle East raged on.

The S&P/TSX composite index .GSPTSE was up 0.16% at 32,929.09, a day after clocking its biggest one-day jump since February 26, before the conflict began.

Energy stocks .SPTTEN climbed 1.1%, gaining for a fifth consecutive session - their longest streak since late January. Tech stocks .SPTTTK gained 1.8%.

Oil prices rose as renewed Iranian attacks on the United Arab Emirates heightened concerns about the worsening outlook for global supply if there is no quick resolution to U.S.-Israeli war on Iran. O/R

The spike in oil prices has reignited worries about global inflation, prompting central banks to reassess their policy stance. Canada is seen as relatively insulated from the latest energy shock as it is a net oil exporter.

The U.S. Federal Reserve kicks off its two-day policy meeting later in the day and is widely expected to keep rates unchanged. Markets also anticipate the Bank of Canada to stand pat at its policy announcement on Wednesday.

However, investors will closely monitor policymakers' comments to gauge how central banks will proceed with interest rate cuts as potential energy-driven inflation clouds the outlook.

"If you stripped out the surge in oil prices, you could say that the Bank of Canada has quite a bit of ammunition to cut rates further," Josh Sheluk, portfolio manager at Verecan Capital Management, said.

"If the surge in oil prices subsides a little bit and economic weakness persists, I wouldn't be surprised to see cuts later this year," he said, adding that he was not expecting any interest rates at the moment.

Goeasy GSY.TO was the biggest gainer on the index, adding 13%, after the subprime lender lost more than C$1 billion in its market capitalization earlier this month following charge-offs and write-downs due to weakness in its auto loan book.