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Diverging Paths: Bank of Canada Holds as Fed Cuts Rates

  Tiff Macklem, Governor of the Bank of Canada, holds a press conference at the Bank of Canada in Ottawa on Wednesday, Oct. 29, 2025. In a striking display of policy divergence, the Bank of Canada (BoC) is widely expected to hold its benchmark interest rate steady at 2.25% during its final meeting of 2025, while the U.S. Federal Reserve (Fed) is poised to deliver another quarter-point cut, lowering its target range to 3.75%–4.00% . The BoC’s decision reflects a Canadian economy that has shown resilience in recent months. Strong job gains, steady wage growth, and a 2.6% annualized GDP increase in Q3 have bolstered confidence that inflation can be guided toward target without further easing. Financial markets have placed odds of nearly 93% in favor of a rate hold , signaling broad consensus among economists. By contrast, the Fed faces a more complex backdrop. Despite lingering inflation concerns, the U.S. economy has experienced a slowing labor market and uneven growth, promp...
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Global Outage Sends Markets Tumbling: S&P/TSX and U.S. Indices Drop


The S&P/TSX composite index closed lower on Friday, reflecting a broader downturn in global markets. The index fell by 36.37 points to settle at 22,690.39. This decline was part of a larger trend, as U.S. markets also experienced significant losses.

The downturn was largely attributed to a global outage caused by a faulty software update from CrowdStrike, which affected numerous companies and organizations worldwide. In the U.S., the Dow Jones Industrial Average dropped 377.49 points to 40,287.53, while the S&P 500 and Nasdaq composite indices fell by 39.59 points and 144.28 points, respectively.

The Canadian dollar also saw a slight decrease, trading at 72.85 cents U.S., down from 73.01 cents U.S. on Thursday. Commodity markets were not spared, with crude oil prices dropping by $2.66 to $78.64 per barrel, and gold prices falling by $57.30 to $2,399.10 an ounce.

This market reaction underscores the interconnected nature of global financial systems and the widespread impact that technological disruptions can have on economic stability.


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