Today, bank of canada increased their interest rates by .5 percent. Being a dumb, what’s the reason behind it. How does it impact a common man in day to day spendings?
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Simple answer because they can and to make more money. Longer answer normally for something like to fight inflation. Higher rates means less people will take those loans and therefore less spending on things people don’t need. On the other hand poorer people will often still need loans even with raised rates, so the higher rates will make more money for the banks. At the end of the day the main goal is for them to bring in more money.
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