What effects do low interest rates have on the economy?

Back to learn

What effects do low interest rates have on the economy?

Rounding it up

  • Low interest rates affect everything; the Bank of Canada influences rates by changing its primary rate.

  • Low rates mean banks lend more money and borrowers take more; there’s generally more cash in the economy.

  • That amount of money can dilute the power of a single dollar, thereby causing inflation.

5 min read

Dan Bucherer
#interest rates#Bank of Canada#economy

Dan Bucherer

Dan is a runner and writer living in the Washington, D.C. area, where he currently works for a financial services trade association as the Communications Director.

Recent Articles

Bank of Canada raises interest rates

How fast does your credit score go up in Canada?

Will personal loans impact my credit score?

Can I get a personal loan with bad credit?

What kind of loans can I get in Canada?

Should I split my money between banks?

Related articles

Bank of Canada raises interest rates

3 mins

Clay Shiffman

The Bank of Canada announced that it was hiking its key overnight rate to 3.25% to combat inflation. Here's what you need to know and how it affects you.

Bank of Canada raises interest rates

3 mins

Clay Shiffman

The Bank of Canada announced that it was hiking its key overnight rate to 3.25% to combat inflation. Here's what you need to know and how it affects you.

#interest rates

#inflation

#debt management

logo.koho

Company

AboutCareersCultureGamerLearnPartnersTravelStatus

Connect

The KOHO Mastercard® Prepaid card is issued by KOHO Financial Inc. pursuant to license by Mastercard International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

By using this website, you accept our Terms and Conditions. Follow these links for more information on our Privacy Policy, Accessibility Policy and Multi-Year Accessibility Plan. © 2022 KOHO Financial Inc.