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TSX down 0.2%

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BoC trims rates by 25-basis points

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Healthcare stocks tumble

(Updated at 11:05 a.m. ET/1505 GMT)

By Nikhil Sharma

July 24 (Reuters) - Canada's main stock index slipped on

Wednesday after the country's central bank cut the interest

rates in line with investors' expectations and trimmed its 2024

growth forecast.

At 11:05 a.m. ET (1505 GMT), the S&P/TSX composite index

was down 33.85 points, or 0.15%, at 22,778.87.

The Bank of Canada cut its key policy rate by 25 basis

points to 4.5%, having once lowered it in June. It also hinted

at the likelihood of more cuts this year if inflation continues

to ease.

The top lender trimmed its 2024 growth forecast to 1.2%,

down from 1.5% in April, in part due to households setting aside

more money to pay debts and having less to spend on

discretionary items.

"They are calling out the slack in the labor market in

Canada and noting an uptick in the unemployment rate and the

longer duration of unemployment," said Brian Madden, chief

investment officer at First Avenue Investment Counsel.

"In all likelihood, this statement does pave the way for

probably more rate cuts to come."

Among Canadian sectors, healthcare led the losses

with a 10% decline as Bausch Health Companies ( BHC ) slumped

almost 40% following report of possible bankruptcy filing.

The industrials sector dropped 1.2%, pulled down

by a 6% fall in Canadian National Railway ( CNI ) after the

company's second-quarter results missed estimates.

The materials sector was the top gainer, boosted

by gains in gold prices as investors assessed the timeline of

U.S. interest-rate cuts.

The rate-sensitive utilities sector, which

includes high-dividend paying stocks that could particularly

benefit from rate cuts, advanced 0.45%.

Separately, consumer staples also jumped 0.53%.