The S&P/TSX Composite Index rose 0.7% to close at 36,092 on Wednesday after the Bank of Canada left its benchmark interest rate unchanged at 2.25%, in line with expectations. The central bank said recent data had reinforced the Governing Council’s view that the economic recovery is broadening. At the same time, it warned that upside risks to inflation have increased and that newly imposed tariffs have heightened uncertainty around the growth outlook. The Bank of Canada kept its options open on the future path of monetary policy, reiterating that it stands ready to adjust policy as needed.
Financials advanced, with major banks trading higher: Royal Bank of Canada gained 1.7%, TD Bank added 1.2%, Bank of Montreal rose 2.2%, Scotiabank climbed 1.9%, and CIBC increased 2.4%. Miners also rebounded as gold prices recovered from a recent selloff, lifting Agnico Eagle by 1.2%, Barrick by 2%, Wheaton Precious Metals by 3.6%, and Franco-Nevada by 1.5%. Shopify added 1%, mirroring a rebound in U.S. technology stocks.
