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What risks come with the 50 basis points interest rate cut?

Lyndsay Malchuk Lyndsay Malchuk, The Market Online
0 Comments| October 23, 2024

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The Bank of Canada cut interest rates by another 50 basis points Wednesday, continuing the central bank’s recent policy decisions. The cut was justified given that the inflation rate is well below the target of 2 per cent.

However, this also comes with broader economic implications. While it might stimulate borrowing and spending in key sectors, risks such as inflationary pressures or potential asset bubbles are also present.

In the video above, Stockhouse spoke with Michael Succurro, CEO of Fluent Capital Management and co-founder and president of Spark Financial Group, to grab some clarity, insights and future perspectives on this recent interest rate cut.

Check out previous conversations with Succurro about mortgage renewals, the announcement of 30-year amortization revisions plan and more.

To stay up-to-date on all the market news, head to Stockhouse.com.

Join the discussion: To join the conversation on real estate, head to our Bullboard investor discussion forums and the rest of Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.




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