Bank of Canada Holds Rates Steady, But What Does it Mean for Your Portfolio?

The Bank of Canada has kept its policy rate at 2.25%, sparking mixed reactions among investors and analysts.

According to Jitendra Parashar, a contributor to The Motley Fool Canada, this decision may indicate that the central bank is cautious about lowering rates further in light of rising oil prices and ongoing trade tensions with the US.

This could create uncertainty for investors who were hoping for a rate cut. However, Parashar suggests that rather than waiting on the sidelines, investors should look at stocks that can benefit from relatively stable borrowing costs.

Two such top Canadian stocks are Bank of Montreal (TSX: BMO) and RioCan Real Estate Investment Trust (TSX: REI.UN). BMO has delivered impressive gains despite cooling recently, with shares up 37% over the last year. Its Canadian personal and commercial banking adjusted net income rose 15% YoY to $983 million in its third quarter of fiscal year 2026.

RioCan's units have gained 11% this year, but remain about 10% below their 52-week high. The REIT's strong occupancy and leasing momentum make it an appealing income stock for investors seeking protection from monetary policy uncertainty.