Canadian Stocks Move Lower After Bank Of Canada Leaves Rates Unchanged

(RTTNews) - After showing a lack of direction early in the session, Canadian stocks moved to the downside over the course of the trading day on Wednesday.

The benchmark S&P/TSX Composite Index fell 97.64 points or 0.4 percent to 26,329.00, giving back ground after inching up to a new record closing high in the previous session.

The pullback by Canadian stocks came after the Bank of Canada announced its widely expected decision to leave interest rates unchanged for the second consecutive meeting.

The Canadian central bank said it decided to maintain its target for the overnight rate at 2.75 percent, with the Bank Rate at 3 percent and the deposit rate at 2.70 percent.

"With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts," the Bank of Canada said.

The bank added, "We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs."

Disappointing U.S. economic data also weighed on Bay Street, with separate reports showing weaker than expected private sector job growth and an unexpected contraction by service sector activity.

Energy stocks led the way lower as the price of crude oil gave back ground after a two-day surge, dragging the S&P/TSX Capped Energy Index down by 1.8 percent.