(Reuters) - Futures for Canada's main stock index were flat on Wednesday, as cautious investors awaited the Bank of Canada's highly anticipated policy decision due later in the day.

December futures on the S&P/TSX index were up 0.01% at 6:00 a.m. ET (10:00 GMT).

The central bank is expected to slash interest rates by a half percentage point, according to a majority of economists polled by Reuters, many of whom increased their bets on a larger cut on news of a sharp rise in unemployment rate.

Lower credit conditions make borrowing cheaper, potentially boosting consumer spending and business investments, and enhancing the appeal of equities.

The top bank has reduced its key policy rate by 125 basis points since June amid worries about the country's lukewarm economic growth, even as annual inflation came within its target range of 2%.

In commodities, oil prices rose with expectations of higher demand in China after the world's largest crude importer announced it would relax monetary policy in an attempt to stimulate economic growth. [O/R]

Meanwhile, gold prices traded mostly flat ahead of U.S. inflation data and copper prices fell tracking a strong U.S. dollar. [GOL/MET/L]

The composite index ended lower on Tuesday, as technology and real estate shares lost ground.

Across the border, traders closely watched the U.S. November inflation data, set to be released before the bell, which could influence the Federal Reserve's rate decision this month, with bets for a quarter-point cut standing at 84.7%.

In corporate news, forest and wood products firm Canfor Corporation announced it has acquired 7% of outstanding shares of its Swedish peer VIDA AB effective today.

COMMODITIES

Gold: $2694.31; +0.02% [GOL/]

US crude: $69.25; +0.96% [O/R]

Brent crude: $72.86; +0.93% [O/R]

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report [.TO]

Canadian dollar and bonds report [CAD/] [CA/]

Reuters global stocks poll for Canada

Canadian markets directory

($1 = 1.4188 Canadian dollars)

(Reporting by Ragini Mathur; Editing by Vijay Kishore)