S&P/TSX Composite rises 0.7% as BoC holds policy rate at 2.25%
The S&P/TSX Composite Index rose 0.7% to close at 36,092 after the Bank of Canada kept its key policy rate unchanged at 2.25%, citing broadening recovery but higher upside inflation risks and tariff-linked growth uncertainty.
The S&P/TSX Composite Index rose 0.7% to close at 36,092 on Wednesday after the Bank of Canada kept its key policy rate unchanged at 2.25%, as widely expected.
The BoC said recent data had reaffirmed the Governing Council’s view of a broadening economic recovery.
However, it noted that upside risks to inflation had increased, while new tariffs had made the growth outlook more uncertain.
The central bank left the future path for monetary policy open, saying it would adjust policy as needed.
Major banks traded higher, with RBC rising 1.7%, TD Bank adding 1.2%, BMO gaining 2.2%, Scotiabank advancing 1.9%, and CIBC climbing 2.4%.
Miners rebounded as gold prices rose following a recent selloff, with Agnico Eagle up 1.2%, Barrick gaining 2%, WPM advancing 3.6%, and Franco-Nevada adding 1.5%.
Shopify rose 1%, tracking a rebound in US technology stocks.