Technology and materials led a broad rally that drove Canada’s main stock index higher as investors continued to digest the Bank of Canada’s hawkish comments as they look for signs that higher interest rates are starting to slow the economy and tame inflation.
In raising its key interest rate 50 basis points Wednesday, the Canadian central bank’s governing council said it was prepared to act more forcefully if needed.
“That was certainly quite a hawkish statement to say that there is the potential for the Bank of Canada to actually untether itself from the Federal Reserve and so I think bad news becomes good news in that backdrop,” said Lesley Marks, chief investment officer at Mackenzie Investments.
Data the bank referenced such as the annual inflation running at a 31-year high of 6.8 per cent is a backward-looking number.
“So if we start to see any indication of an economy that’s…