Mitsubishi UFG Sees Bank of Canada Cutting Rates 25bps This Week

BY MT Newswires | ECONOMIC | 10/27/25 07:10 AM EDT

07:10 AM EDT, 10/27/2025 (MT Newswires) -- The BoC is also expected to lower rates by 25bps for the second consecutive meeting this week, said MUFG.

The BoC is slated to release the policy statement on Wednesday at 9:45 a.m. ET.

However, there is a higher risk that the BoC may delay this week than the United States Federal Reserve, stated the bank.

Firstly, Canadian economic data releases this month have been stronger than expected, including the rebound in employment growth and pick-up in core inflation in September, pointed MUFG.

Secondly, the BoC's policy rate is already much lower than of the Fed, reducing the need for faster rate cuts, added the bank.

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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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