-- The Toronto Stock Exchange is down near 230 points at midday, with most sectors lower, led by info tech (-2.0%) and industrials (-1.8%).
Energy (+1.9%) is the top performer, boosted by higher oil prices.
The Bank of Canada held its key benchmark interest rate steady at 2.25%. Avery Shenfeld, chief economist at CIBC Capital Markets, said the decision to leave the policy rate at 2.25% came as no surprise given the clouded outlook ahead.
Shenfeld noted the Bank assumed that oil prices will gradually decline to US$75/bbl in mid-2027, "still lifting near term inflation but leaving the growth outlook little changed from the prior forecast, one that only makes very gradual progress in eliminating economic slack". While the BoC sees "little evidence" of a spillover to core inflation so far,", it said that it will not let "higher energy prices become persistent inflation".
Shenfield said, "If that sounds hawkish, its worth noting that the Bank doesn't see that happening, projecting a spike to 3% inflation but a return to the 2% target early next year, a view we share, and while it says it might need to adjust the policy rate, those changes "can be expected to be small."
In stocks, CGI (GIB-A.TO) is down near 14% after it reported its second-quarter results this morning.
CN Rail (CNR.TO) is 6.1% lower after reporting inline first-quarter results.