Last Wednesday, the Bank of Canada (BoC) made a surprise move and cut the benchmark interest rate from 1% per year to 0.75% per year. The BoC is the government entity tasked with setting short term interest rates in Canada.
This move by the BoC will affect Canadians in a number of ways, especially for those of us who invest in stocks and bonds. In this article, I’ll explain 5 such consequences that we as Canadian investors can expect.
Why the Bank Of Canada Lowered Rates
First, let me explain why the BoC would want to move ...