FX.co ★ TSX Falls as BoC Holds Rates

The S&P/TSX Composite Index slipped below 33,500 on Wednesday after the Bank of Canada left interest rates unchanged. As widely anticipated, the central bank kept its policy rate at 2.25%, opting for a wait-and-see stance amid persistent US–Iran tensions that are heightening inflation concerns. Oil prices continued their advance, amplifying worries about a renewed global inflation spike, particularly after the strong March inflation reading.

Shares of major Canadian banks, including BMO, TD, and Royal Bank of Canada, were little changed, trading near the flatline. In contrast, the recent jump in oil prices has buoyed energy stocks, while a modest pullback in gold prices weighed on miners. Canadian Natural Resources rose more than 2%, whereas Agnico Eagle fell over 2%.

In the US, major technology firms—Microsoft, Alphabet, Meta, and Amazon—are scheduled to report quarterly results after the closing bell on Wall Street, with potential spillover effects for Canadian technology names. Shopify shares declined more than 1.5%.