Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

The TSX Falls Again as Chances the Bank of Canada Will Cut Interest Rates Diminish

BY MT Newswires | ECONOMIC | 12/08/25 12:36 PM EST

12:36 PM EST, 12/08/2025 (MT Newswires) -- The Toronto Stock Exchange's S&P/TSX Composite Index weakened for a third-straight session midday on Monday on fading expectations for an interest-rate cut this week from the Bank of Canada.

The index was last seen down 99.6 points to 31.211.81 points, continuing to drop off last Thursday's record high of 31,477.57. Most sectors were lower, with communication services, health care and materials leading the decliners.

The Bank of Canada will meet on Wednesday to deliver its latest interest-rate decision, with the central bank widely expected to stand pat.

"The Bank of Canada is set to leave its policy rate unchanged at 2.25%, after declaring in October that it is "at about the right level" to keep inflation near target and help the economy through a structural adjustment. Forecasters unanimously expect a hold and OIS markets see no chance of a cut," National Bank Economics wrote. "After October's rate cut, many were skeptical the BoC easing cycle was over. But implied cut odds were gradually-and then abruptly-pared after stronger-than-expected jobs, inflation and GDP data."

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

More Fixed Income News

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.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article