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- The Bank of Canada's strategy of rapidly increasing its key interest rate in an effort to tackle skyrocketing inflation will likely trigger a recession, says a new study released Tuesday from the Canadian Centre for Policy Alternatives (CCPA).
www.ctvnews.ca/business/bank-of-canada-s-rapid-rate-hikes-likely-to-cause-a-recession-study-finds-1.5974723Recession likely due to BoC rapid rate hikes: study | CTV News
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Decreasing the policy interest rate can stimulate economic activity and cause inflation to rise. Lower interest rates encourage people to spend more and save less. Lower rates reduce the amount needed to pay off debt and that means more people will borrow money for major purchases like a new vehicle.
Jul 12, 2023 · Can rising interest rates cause a recession? Rapid increases in interest rates can often lead to a recession . Since 1961, there have been three instances where the BoC raised interest rates rapidly to slow down inflation.
Oct 13, 2023 · Bank of Canada won't rule out higher rates amid rising geopolitical risks. Higher for longer rates not expected to cause a recession
- Barbara Shecter
Mar 9, 2023 · Even at 5.9%, Canada’s current inflation rate is the second lowest in the G7. We started our fight against inflation relatively early, and we’ve aggressively raised interest rates by 4.25 percentage points since early 2022. This was the best way to prevent the need for even larger increases—and more pain—later.
Jul 8, 2022 · Inflation, labour shortages and rising interest rates will drag on Canadian growth, pushing the economy into a moderate contraction in 2023. The jobless rate will rise next year but to less severe levels than in previous downturns.
Jun 20, 2024 · The economy has dodged a recession. But unemployment is rising, consumer spending is expected to slow further and the Bank of Canada has a laundry list of things it's worried about.
