Markets Await Expected Bank of Canada Rate Hike and Fed Decision

Markets are positioning ahead of monetary policy announcements from both the Bank of Canada and the Federal Reserve on Wednesday. The Bank of Canada is widely anticipated to raise interest rates by 25 basis points—marking its first rate hike since July 2023—to curb energy-driven inflation following an attack on a Saudi Arabian refinery that boosted WTI crude oil futures 1.8% to $101.70 per barrel. Meanwhile, the Federal Reserve is expected to keep benchmark interest rates unchanged. Ahead of the decisions, S&P/TSX 60 standard futures dipped 2 points, or 0.1%.