What effects do low interest rates have on the economy?

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What effects do low interest rates have on the economy?

Rounding it up

  • Low interest rates affect everything; the Bank of Canada influences rates by changing its primary rate.

  • Low rates mean banks lend more money and borrowers take more; there’s generally more cash in the economy.

  • That amount of money can dilute the power of a single dollar, thereby causing inflation.

5 min read

Dan Bucherer
#interest rates#Bank of Canada#economy

Dan Bucherer

Dan is a runner and writer living in the Washington, D.C. area, where he currently works for a financial services trade association as the Communications Director.

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