The Toronto Stock Exchange (TSX) has delivered a robust performance in 2025, driven by a confluence of factors: a resumption of the U.S. Federal Reserve’s easing cycle, the Bank of Canada’s cautious but clear pivot toward monetary easing, and the resilience of Canada’s commodity-linked sectors. With the Bank of Canada maintaining its overnight rate at 2.75% in August 2025 while signaling two to three rate cuts by year-end [1], investors are increasingly turning their attention to real asset stars—particularly energy, mining, and critical minerals—positioned to benefit from lower borrowing costs and a weaker Canadian dollar.
The Monetary Easing Tailwind
The Bank of Canada’s forward guidance underscores its openness to further rate cuts if labor market data weakens or trade tensions escalate [1]. Economists project the policy rate could drop to 2.25% by year-end, with some scenarios suggesting a potential…
