Bank of Canada Holds Rates Steady Amid Improving Economy
The Bank of Canada has kept its policy rate steady at 2.25%, and investors are now considering how this decision will affect their portfolios.
Despite the stability in interest rates, the Canadian economy is showing signs of improvement, which may make it difficult for the central bank to lower rates soon.
The Bank of Canada's governor, Tiff Macklem, has emphasized that the economy has shown resilience despite global headwinds such as rising oil prices and trade tensions with the US.
Two Canadian stocks, Bank of Montreal (BMO) and RioCan Real Estate Investment Trust (REI.UN), are highlighted as attractive investment opportunities due to their strong fundamentals and potential for long-term growth.
BMO, one of North America's largest banks, has delivered impressive gains despite a recent pullback, with its shares up 37% over the last year. Its adjusted net profit climbed 19% year-over-year in the third quarter of fiscal 2026 to $2.9 billion.
RioCan, on the other hand, offers a juicy 5.6% annualized distribution yield and has seen its units gain 11% so far this year. Its recent operating results show strong occupancy and leasing momentum, with commercial same-property net operating income growing 4.3% last quarter.