3 Top Bank Stocks You Can Buy Today
Canada's central bank just announced a surprising one percentage point increase in interest rates. It is clear that the country is worried about fast-rising inflation, but the cure could push Canada into a recession.
The same basic story holds true for the United States. And yet there's both good and bad news here for banks like Bank of Montreal (NYSE: BMO), Toronto-Dominion Bank (NYSE: TD), and Royal Bank of Canada (NYSE: RY).
The clear concern today is that inflation is running too hot. That eats away at the buying power of money and makes people feel increasingly unhappy as their cash buys less and less over time. The solution is to get inflation under control, which generally means central banks increase interest rates. The U.S. central bank is doing just that, as is Canada's central bank. Recently both have been erring on the side of larger rate hikes, with Canada's 1% increase a move that suggests its central bank is very concerned that prices are getting out of hand.
Source Fool.com
