Markets Price in 50bps of Total Bank of Canada Rate Cuts Through March 2026, Says BMO

BY MT Newswires | ECONOMIC | 09/10/25 07:40 AM EDT

07:40 AM EDT, 09/10/2025 (MT Newswires) -- The Bank of Canada policy meeting is set for next Wednesday and a 25bps rate cut is almost fully priced, with 50 bps of easing priced in through March 2026, said Bank of Montreal (BMO).

If so, that would take variable mortgage rates down into the mid-3% range, at which point the bank would have to "seriously" start thinking about the housing market coming back to life.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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