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

Bank of Canada Refrains from Surprises This Week, Says Commerzbank

BY MT Newswires | ECONOMIC | 12/11/25 09:27 AM EST

09:27 AM EST, 12/11/2025 (MT Newswires) -- The Bank of Canada left interest rates unchanged on Wednesday, as expected, said Commerzbank.

At the same time, the BoC indicated that rates are likely to stay where they are for some time, wrote the bank in a note to clients.

Decision-makers noted signs of recovery in the labor market and emphasized that the current key interest rate is appropriate for maintaining inflation at around 2% and supporting the real economy.

With a key interest rate of 2.25%, the BoC is operating slightly below the neutral level, and this appears acceptable for the foreseeable future, stated Commerzbank.

The Canadian dollar (CAD or loonie) initially reacted with slight weakness to the decision, only ultimately closing slightly higher against the US dollar (USD), pointed out the bank.

A more pronounced recovery of the Canadian dollar against the US dollar will now likely depend on developments in the trade conflict with the United States, added Commerzbank. It's only when progress has been made in this area and uncertainty has subsided, that the Canadian real economy is likely to recover more strongly.

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