Bank of Canada holds rate at 2.25% as TSX gains and Fed hike bets ease

Sep 2, 2026 14:29 (20d ago)

Bank of Canada held its overnight policy rate at 2.25% for a seventh consecutive meeting, while Governor Macklem kept open the possibility of rate increases if inflation stayed elevated.
The S&P/TSX Composite Index was reported at 36,092, up 0.7%, in one account and 36,633, up 1.5%, in a later or separate market account.
Gold miners, banks and technology shares advanced as gold prices rose and September US Federal Reserve rate-hike expectations eased after Governor Waller advocated patience.

The Bank of Canada held its overnight policy rate at 2.25% for a seventh consecutive meeting and 11th straight month, while Governor Tiff Macklem said policymakers were prepared to raise rates multiple times if inflation remained elevated. Canadian equities advanced as gold miners, banks and technology shares gained, with separate market accounts reporting S&P/TSX Composite Index closes of 36,092, up 0.7%, and 36,633, up 1.5%. Expectations for a September US Federal Reserve rate increase eased after Governor Christopher Waller said he was inclined to be patient, pushing Canadian and US government bond yields lower from 2025 highs.