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Bank of Canada Needs to Raise Interest Rates to Curb Decades-High Inflation

The Bank of Canada has been steadily raising its key lending rate from pandemic record lows to fight inflation. Ultra low interest rates are good when the economy is doing poorly, but when itu2019s heating up, rising interest rates are an important tool for moderating economic growth. Rising interest rates also have an immediate impact on the stock market. To learn more about investing with Sharp Asset Management, <br>Visit: www.sharpasset.com or Call: 416-722-9009

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Bank of Canada Needs to Raise Interest Rates to Curb Decades-High Inflation

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  1. Bank of Canada Needs to Raise Interest Rates to Curb Decades-High Inflation

  2. Why Is The Bank of Canada Raising Interest Rates? Decades-high inflation and rising interest rates is a new concept for many Canadians. In fact, an entire generation of Canadians, those under the age of 40, have never experienced this kind of inflation. And it’s having a big effect on those who accumulated large amounts of debt. According to Statistics Canada, debt to household disposable income rose to 181.7% in the second quarter, up from 179.7% in the first quarter. That means Canadian households have $1.82 in debt for every dollar of disposable income.

  3. Why Is The Bank of Canada Raising Interest Rates? • While rising interest rates are painful for consumers, they are needed to help slow surging inflation. It will take time though and the sharp increase in interest rates is expected to slow Canada’s economic growth in the back half of 2022. • A recession may actually be needed to bring inflation back down to two percent. A recent study suggests that a recession is virtually unavoidable. Each time the Bank of Canada has quickly raised its overnight lending rate over the last 60 years, it’s led to a recession.

  4. Sharp Asset Management for Your Retirement Planning If you live in Toronto, Mississauga, or anywhere in the GTA and are looking for a portfolio management firm or asset management company to help you build a diversified retirement portfolio designed to suit your investment goals, Sharp Asset Management can help. Sharp Asset Management Inc. is an independent portfolio management firm that is 100% owner-operated. Since we are a highly concentrated group of professionals, we can respond quickly to changing market conditions. To learn more about investing with Sharp Asset Management, contact us today.

  5. Contact Us Sharp Asset Management 21 Greenwin Village Road, Toronto, Ontario, M2R 2R9 Call: 416-722-9009 Email: pstewart@sharpasset.com / hilarypoff@sharpasset.com Visit: www.sharpasset.com

  6. Thank You! For more information, visit us at: www.sharpasset.com

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