(Adds analyst comment in paragraph 4; updates prices, sector details)

* Fairfax Financial up on plans to buy Kennedy-Wilson's $2.1 bln loans

* Richelieu Hardware down after brokerage cuts rating

* TSX adds 0.1%

June 5 (Reuters) - Canada's main stock index edged up on Monday, aided by energy stocks, while investors awaited the Bank of Canada's (BoC) rate-setting decision due this week.

BoC is largely expected to keep its key interest rate on hold at 4.50% for the rest of this year, according to a Reuters poll of economists, who also said the risk of one more rate hike was high. The decision is expected on Wednesday.

Bets among market participants for a 25-basis-point hike have ticked up over the past weeks after data showed a rebound in domestic inflation.

"There really isn't too much excitement today since we have a BoC interest rate announcement later in the week with most people believing the BoC will not raise rates again," said Allan Small, senior investment adviser at Allan Small Financial Group.

Rate-sensitive sectors, including tech, real estate and financials fell between 0.06% and 0.3%.

At 10:05 a.m. ET (1405 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 14.43 points, or 0.07%, at 20,039.06.

The energy sector added 0.6%, tracking a gain in crude oil prices after top producer Saudi Arabia said it would cut output by a further 1 million barrels a day, starting July.

The TSX had logged its best day in seven months on Friday on hopes the Federal Reserve would pause its monetary tightening soon.

However, given the dimming outlook for commodities and mixed domestic bank earnings, an economic slowdown remains a paramount concern.

Among company news, Fairfax Financial Partners added 0.6% after a subsidiary of Kennedy-Wilson Holdings said it plans to sell about $2.1 billion of a loan portfolio it had bought from regional lender Pacific Western to the insurance firm.

Richelieu Hardware Ltd tumbled 1.9% after brokerage CIBC downgraded the industrial firm to "neutral" from "outperformer". (Reporting by Johann M Cherian in Bengaluru; Editing by Shilpi Majumdar)