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How to Combat Rising Inflation and Interest Rates - Angela Iermieri, Financial Planner at Desjardins

More Money Podcast

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The Relationship Between Interest Rates and Inflation

The bank of Canada's job is to keep the inflation between 1% and 3%. In order to lower inflation, one of the key ways to do it is to increase interest rates. When interest rates rise, people tend to spend less and invest less in their companies. So on a short term basis, those are the impacts that lowering inflation could have by increasing interest rates.

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