Small font size A Larger text size A Largest text size A

UBS Keeps Its Forecast of A Bank of Canada 2.25% Policy Rate Through End 2027

BY MT Newswires | ECONOMIC | 11/12/25 12:29 PM EST

12:29 PM EST, 11/12/2025 (MT Newswires) -- UBS said it retains its forecast of a 2.25% Bank of Canada policy rate through the end of 2027.

The statement following the October BoC policy meeting stated, "If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment."

This is consistent with the bank's view that it would require notable economic weakening for the BoC to lower the policy rate further below 2.25%, which is the lower end of its estimate of neutral.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

More Fixed Income News

Munis quiet ahead of Christmas holiday BY SourceMedia Bond Buyer |MUNICIPAL 12/24/25 01:30 PM EST
Sector Update: Financial Stocks Rise Wednesday Afternoon BY MT Newswires |TREASURY 12/24/25 12:37 PM EST
After slim year for SEC muni enforcement actions, some expect a pickup in 2026 BY SourceMedia Bond Buyer |MUNICIPAL 12/24/25 12:23 PM EST
US Equity Indexes Rise After Upbeat Jobless Claims Data BY MT Newswires |ECONOMIC 12/24/25 12:18 PM EST

All Fixed Income News

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.

fir_news_article