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Why Interest Rates Matter for Canadians

Interest rates are the single most powerful lever in Canada's economy.  When the Bank of Canada adjusts its policy rate, the effects reach every household—from the cost of carrying a mortgage to the return on a savings account. With rates currently at 2.25% and significant uncertainty ahead, understanding how rates work has never been more important for your finances. What Is the Bank of Canada's Policy Rate? The Bank of Canada sets the overnight policy rate—the interest rate at which major banks lend money to each other. This rate serves as a benchmark that influences borrowing and lending costs across the entire economy. When the Bank raises or lowers this rate, commercial banks adjust their prime rates accordingly, which directly affects the rates you pay on mortgages, lines of credit, and other loans. The Bank's primary goal is to keep inflation near its 2% target. When inflation runs too hot, the Bank raises rates to cool spending. When the economy slows, it cuts rates...
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Wall Street Leans Toward Gains Ahead of Powell Testimony and Earnings Data


Wall Street is poised for gains as we enter day two of Federal Reserve Chair Jerome Powell’s testimony before Congress. Here are the key highlights:

  1. Futures Rise: Futures for the S&P 500 have climbed 0.2%, while Dow Jones Industrial Average futures edged up slightly. Investors are closely monitoring Powell’s remarks for insights into monetary policy decisions.

  2. Earnings Season: As companies report their quarterly earnings, market participants are paying attention to corporate performance. Expectations are high, and positive surprises could drive further gains.

  3. Inflation Data: The market is also keeping an eye on inflation data. Rising prices have been a concern, and any indications from Powell regarding the Fed’s stance on inflation will be closely scrutinized.

Remember, Powell’s comments can significantly impact market sentiment. Stay tuned for further updates as the day unfolds!


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