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TSX ends up 0.3%, at 21,593.96

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Posts highest closing level since April 2022

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BoC holds its policy rate at 5%

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Materials group rises 1.3%; gold hits a record high

(Updates at market close)

By Fergal Smith

March 6 (Reuters) - Canada's main stock index rose on

Wednesday to a near two-year high, led by gains for the

materials sector, as the Bank of Canada and the Federal Reserve

continued to signal a move to lower interest rates ahead.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 68.03 points, or 0.3%, at 21,593.96, its

highest closing level since April 2022.

There was a lack of "hawkish" surprises from the BoC and the

Fed, said Ian Chong, a portfolio manager at First Avenue

Investment Counsel Inc.

"They seem to communicate a very consistent message that

rates should come down later in the year should economic data

continue to be supportive of that," Chong said.

Federal Reserve Chair Jerome Powell told lawmakers that the

Fed still expects to reduce interest rates later this year,

while the Bank of Canada reiterated that the discussion at the

central bank has shifted from whether the rates were restrictive

enough to how long they needed to stay at their current level.

The materials group, which includes precious and base metals

miners and fertilizer companies, rose 1.3% as gold added to its

record-setting rally.

Energy was also up, rising 0.2%, as the price of oil

settled 1.25% higher at $79.13 a barrel.

Pipeline operator Enbridge Inc ( ENB ) raised its

short-term profit growth forecast and said it will spend $500

million expanding pipeline and storage assets to improve its

U.S. Gulf Coast presence. The company's shares rose 0.2%.

The consumer-related sectors also posted gains, with

consumer staples rising 0.6% and consumer discretionary up 0.9%.