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 36092 on Wednesday after the Bank of Canada left its key policy rate unchanged at 2.25%, as widely expected. The central bank said recent data had reaffirmed the Governing Council’s view of a broadening economic recovery, while noting that upside risks to inflation had increased and that new tariffs had made the growth outlook more uncertain. It said the future path for monetary policy remained open and that it would adjust policy as needed. Major banks traded higher, with RBC up 1.7%, TD Bank adding 1.2%, BMO gaining 2.2%, Scotiabank advancing 1.9% and CIBC climbing 2.4%.
Miners also rebounded as gold prices rose after 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.