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CANADA STOCKS-TSX muted after widely expected Bank of Canada rate hike 

By Reuters News

By Anand Gopal R

Oct 28 (Reuters) - Canada's main stock index was little changed on Wednesday after the Bank of Canada delivered a widely anticipated interest-rate hike, with losses in mining stocks weighing on the benchmark.

The S&P/TSX Composite Index .GSPTSE was down 0.08% at 836,142.86 points as of 10:19 a.m. ET (1419 GMT).

  • The central bank raised its benchmark interest rate for the first time in more than three years, lifting it by 25 basis points, and said further increases might be needed to prevent soaring energy costs from fueling broader inflation

  • "With this hike today, maybe we can get away with just one more rate hike in December or early in 2027, which kind of takes all that kind of pressure out of the system and allows the Bank of Canada to be comfortable sitting at that 2.25% to 3.25% range," said Neil Linsdell, head of investment strategy, Canada at Raymond James Ltd

  • Mining stocks weighed on materials sector .GSPTTMT, which dropped 0.9%, with Perpetua Resources , Americas Gold and Silver USA.TO and NovaGold Resources NG.TO down around 3% each

  • Rate-sensitive real estate sector .GSPTTRE and heavyweight financials .SPTTFS fell 0.7% and 0.2%, respectively

  • The US Federal Reserve, however, is expected to keep interest rates unchanged when it announces its policy decision later in the day, according to the CME FedWatch Tool

  • On the flip side, energy sector .SPTTEN and the technology sector .SPTTTK rose around 1.2% each, cushioning losses

  • Among stocks, eye health firm Bausch + Lomb BLCO.TO advanced 8% after lifting its annual revenue outlook, with parent Bausch Health the only gainer in the healthcare index, rising 3.7%

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