Morning Money — Monday, October 26, 2026
A big week for Canadian borrowing costs
The Bank of Canada announces its rate decision Wednesday, October 28. Reuters reports 19 of 34 economists expect a quarter-point increase to 2.50%, as policymakers try to stop energy inflation spreading. That’s a forecast, not a decision. For Canadians, a hike could mean higher variable borrowing costs and renewed pressure on household budgets.
Early markets
December TSX index futures rose 0.51% at 6:03 a.m. ET, with spot gold up 0.5%. Oil eased as diplomatic efforts raised hopes of reduced U.S.–Iran tensions. Lower energy prices could help consumers, while weighing on Canadian oil producers.
South of the border
U.S. futures also pointed higher: the Dow gained roughly 0.4%, the S&P 500 0.3% and Nasdaq 0.5% in an early snapshot. These are premarket readings, not closing prices.
Earnings check
Verizon raised its full-year adjusted earnings outlook to $5.04–$5.06 per share after reporting quarterly adjusted earnings of $1.31. Cadence Design Systems reports after today’s close.
What to watch
Wednesday brings both the Bank of Canada and U.S. Federal Reserve decisions. Alphabet, Microsoft and Amazon also report this week—an important test of whether heavy AI spending is translating into profits. For Canadian investors, the combination could move borrowing rates, the dollar and global equity funds.
