{"id":58010,"date":"2024-09-16T14:57:58","date_gmt":"2024-09-16T18:57:58","guid":{"rendered":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/inspired-investor\/investing-academy\/a-bank-with-a-mission-how-central-banks-shape-the-economy-and-your-money-decisions\/"},"modified":"2024-09-16T14:58:43","modified_gmt":"2024-09-16T18:58:43","slug":"a-bank-with-a-mission-how-central-banks-shape-the-economy-and-your-money-decisions","status":"publish","type":"rbc_my_money_matter","link":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/inspired-investor\/investing-academy\/a-bank-with-a-mission-how-central-banks-shape-the-economy-and-your-money-decisions\/","title":{"rendered":"How Central Banks Shape the Economy \u2014 And Impact Your Finances"},"content":{"rendered":"<div class=\"wp-block-rbc-single-article-header\">\n\t<section class=\"section-grey cover pad-t-hlf\">\n\t\t<div class=\"section-inner w-half w-mob-full centered-margin cover section-grey pad-tb-0\">\n\t\t\t\t\t\t\t<div class=\"inline-block pill-container pill-taxonomies\">\n\t\t\t\t\t<div class=\"mar-b-hlf mob-mar-b snipe pill is-style-blue-pill\">\n\t\t\t\t\t\t<a class=\"primary-taxonomy\" href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/economy\/\">\n\t\t\t\t\t\t\t<span>Economy<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<h1 class=\"mar-b-hlf mar-t-0 mob-pad-lr-hlf h2 has-black-color\">How Central Banks Shape the Economy \u2014 And Impact Your Finances<\/h1><p class=\"mar-b-0 mob-pad-lr-hlf author-text\">By Royal Bank of Canada<\/p>\t\t\t\t\t<div class=\"featured-image-wrapper pos-rel\">\n\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"930\" height=\"620\" src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/TD-2023-02-22T122335.097.jpg?quality=80\" class=\" cover-image  wp-post-image\" alt=\"Buildings and money signs\" srcset=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/TD-2023-02-22T122335.097.jpg 930w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/TD-2023-02-22T122335.097.jpg?resize=300,200 300w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/TD-2023-02-22T122335.097.jpg?resize=768,512 768w\" sizes=\"auto, (max-width: 930px) 100vw, 930px\" \/>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t<\/section>\n\t<div class=\"article mar-t-dbl\">\n\t\t\t\t<section>\n\t\t\t<div class=\"section-inner socials-section\">\n\t\t\t\t<div class=\"top-socials-bar mob-mar-b-hlf\">    <div class=\"social-links mob-mar-b-hlf mob-mar-t-hlf\">\n            <a class=\"social-button-wrapper sharing-custom sharing-email\" href=\"mailto:?subject=How Central Banks Shape the Economy \u2014 And Impact Your Finances &#038;body=Hi, I thought you might be interested in this article from RBC My Money Matters: https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/inspired-investor\/investing-academy\/a-bank-with-a-mission-how-central-banks-shape-the-economy-and-your-money-decisions\/\">\n        <img decoding=\"async\" src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-email.svg\"\n          alt=\"envelope icon\">\n        <span>\n          Email        <\/span>\n      <\/a>\n      <div class=\"social-button-wrapper sharing-copy-wrapper\">\n        <button class=\"sharing-custom sharing-copy\" data-url=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/inspired-investor\/investing-academy\/a-bank-with-a-mission-how-central-banks-shape-the-economy-and-your-money-decisions\/\">\n          <img decoding=\"async\"\n            src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-related.svg\"\n            alt=\"copy icon\">\n          <span id=\"sharing-copyUrl-Label\">\n            Copy URL          <\/span>\n        <\/button>\n        <input type=\"text\" class=\"sharing-copy-text\" aria-labelledby=\"sharing-copyUrl-Label\">\n      <\/div>\n    <\/div>\n  <\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section>\n\t\t\t<div class=\"section-inner w-half w-mob-full centered-margin pad-tb-0 mob-mar-t-hlf mob-mar-b\">\n\t\t\t\t<p class=\"cover-pub-line text-xs mar-b-hlf\">Published September 16, 2024 \u2022 9 Min Read<\/p>\t\t\t<\/div>\n\t\t<\/section>\n\t<\/div>\n<\/div>\n\n\n\n<section class=\"wp-block-rbc-section-block  pos-rel\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner w-half w-mob-full\" style=\"border-radius:0x\">\n<div class=\"wp-block-rbc-rbc-block drop-shadow pos-rel top-line-blue block-wpr  mar-b-hlf\">\n<div class=\"wp-block-rbc-rbc-block-inner-block block-inner\">\n<h4 class=\"wp-block-heading\" id=\"h-tldr\">TLDR<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Central banks issue and monitor a country\u2019s currency (or, in the case of the EU, a group of countries&#8217; currency), and they implement monetary policy, such as setting interest rates and managing inflation.&nbsp;<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>The Bank of Canada\u2019s rate cuts in 2024 can affect Canadians in several ways, impacting savings accounts, loans, mortgages and more.&nbsp;&nbsp;<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>When rates change, connecting with your advisor can help you make informed decisions about your portfolio.&nbsp;&nbsp;<\/p>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n\n<p>Central banks, such as the Bank of Canada or the Federal Reserve in the United States, wield enormous power.&nbsp;<\/p>\n\n\n\n<p>They\u2019re not your everyday banks: You can\u2019t pop in to stash your cash, there are no branded ATMs, and no welcoming reception areas await customers. Instead, central banks manage the supply of money to help manage inflation while strengthening the economy.&nbsp;<\/p>\n\n\n\n<p>Their decisions can affect various aspects of your financial life, from mortgage costs to interest on your savings account and your portfolio performance. Here\u2019s a primer on the inner workings of central banks\u2014and how they may affect your finances.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What do central banks do?<\/h2>\n\n\n\n<p>At a high level, central banks manage the monetary system for their respective countries. The Bank of Canada, for example, designs and issues our currency, the Canadian Dollar (CAD), which is then either manufactured by the Canadian Mint (for coins) or printed by Canadian Bank Note Company (for bills). It also monitors currency already in circulation.<\/p>\n\n\n\n<p>Today, central banks also play a pivotal role in moderating the economy. Central banks have the power to set the overnight lending rate, for example, which impacts each financial institution\u2019s prime interest rate. And they also implement policies that control inflation and aim to keep the value of the CAD stable relative to other currencies.&nbsp;&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group has-light-grey-background-color has-background is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>Did you know?<\/strong><\/p>\n\n\n\n<p>The Bank of Canada was&nbsp;<a href=\"https:\/\/www.bankofcanada.ca\/about\" data-dig-id=\"LP-89574-ab80c150\" data-dig-label=\"founded in 1934\" data-dig-action=\"link click\" data-dig-category=\"LP\" class=\"rbc-link-format\">founded in 1934<\/a>, largely in response to the Great Depression, and opened its doors in 1935.In 1991, the Bank of Canada began&nbsp;<a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/monetary-policy\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-dig-id=\"LP-89574-f3fe4944\" data-dig-label=\"setting monetary policies\" data-dig-action=\"link click\" data-dig-category=\"LP\" class=\"rbc-link-format\">setting monetary policies<\/a>&nbsp;to target inflation.&nbsp;<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Interest rate moves: From 2020 to now<\/h2>\n\n\n\n<p>Central banks are best known for setting interest rates, which affect the broader economy and your investing strategies. As recently as early 2020, most Western central banks kept rates close to zero, which was meant to make borrowing easy and inexpensive.<\/p>\n\n\n\n<p>Then supply-chain snarls and a host of other pandemic shocks led to eye-popping&nbsp;<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/inspired-investor-2\/investing-academy\/whats-up-with-prices-these-days-inflation-explained\/\" data-dig-id=\"LP-89574-8bb094e1\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"increases in the cost of living\" class=\"rbc-link-format\">increases in the cost of living<\/a>, also called inflation, in many advanced economies, including here in Canada.<\/p>\n\n\n\n<p>In response, the Bank of Canada lifted interest rates seven times in 2022, followed by three modest bumps in 2023. Overall, this raised Canada\u2019s overnight rate from 0.25% to 5% in a span of just two years. Borrowing costs for Canadians jumped\u2014particularly homeowners with variable rate mortgages, whose rates rose along with the overnight lending rate.&nbsp;<\/p>\n\n\n\n<p>In 2024, however, rates have begun to drop. The Bank of Canada implemented three 0.25% cuts in&nbsp;<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/economics-101\/understanding-interest-rates\/bank-of-canada-interest-rate-announcement-what-it-means-for-you\/\" data-dig-id=\"LP-89574-7536df26\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"June\" class=\"rbc-link-format\">June<\/a>,&nbsp;<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/economics-101\/understanding-interest-rates\/bank-of-canada-announces-another-interest-rate-reduction-offering-more-positive-signs-for-homebuyers-and-owners\/\" data-dig-id=\"LP-89574-30da742a\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"July\" class=\"rbc-link-format\">July<\/a>, and&nbsp;<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/economics-101\/understanding-interest-rates\/september-interest-rate-announcement-five-questions-canadians-are-asking\/\" data-dig-id=\"LP-89574-49931637\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"September\" class=\"rbc-link-format\">September<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Spotlight on inflation<\/h3>\n\n\n\n<p>Central banks play another key role in managing the economy: They\u2019re responsible for controlling inflation. In Canada, The Bank of Canada aims to keep inflation at roughly 2%\u2014the midpoint of its target range of 1 to 3 percent.<\/p>\n\n\n\n<div class=\"wp-block-group mar-b-hlf has-light-grey-background-color has-background is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>Did you know?<\/strong><\/p>\n\n\n\n<p>The Consumer Price Index, the metric used to measure inflation, was&nbsp;<strong>2.5%<\/strong>&nbsp;in&nbsp;<a href=\"https:\/\/www150.statcan.gc.ca\/n1\/daily-quotidien\/240820\/dq240820a-eng.htm\" target=\"_blank\" rel=\"noreferrer noopener\" data-dig-id=\"LP-89574-b43023ec\" data-dig-label=\"July 2024\" data-dig-action=\"link click\" data-dig-category=\"LP\" class=\"rbc-link-format\">July 2024<\/a>, down from 2.7% in June.&nbsp;<\/p>\n<\/div>\n\n\n\n<p>When inflation is high, central banks try to curtail consumer spending by raising interest rates\u2014and therefore borrowing costs. Conversely, central banks attempt to spur economic activity by lowering rates, making credit more plentiful.<\/p>\n\n\n\n<p>With interest rate decisions, central banks are hoping for a \u201csoft landing,\u201d an industry term for slowing an economy without a severe economic downturn and heavy job losses.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How rate fluctuations impact Canadians<\/h2>\n\n\n\n<p>Changes to the interest rate can have wide implications on your finances. Here\u2019s what generally happens when rates change:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Borrowing costs fluctuate.<\/h3>\n\n\n\n<p>Interest rate fluctuations can also significantly impact Canadians\u2019 debts, including credit debts and mortgages. When rates go down, consumers can typically access credit at a more favorable rate.&nbsp;<\/p>\n\n\n\n<p>When rates decrease, you\u2019ll generally be able to get a fixed rate mortgage at a lower rate, though rate changes do not impact existing fixed rate loans. And, if you have a variable rate mortgage, paying a lower interest rate means more of each payment applies to the principal on your home, speeding debt repayment.<\/p>\n\n\n\n<p>Similarly, if you have a personal loan with a variable interest rate, you may see a decrease in your monthly payment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Inflation rises and falls.<\/h3>\n\n\n\n<p>Interest rates may&nbsp;<a href=\"https:\/\/www.bankofcanada.ca\/2023\/12\/how-higher-interest-rates-affect-inflation\" target=\"_blank\" data-dig-id=\"LP-89574-cce93c7e\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"have an inverse relationship with inflation\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">have an inverse relationship with inflation<\/a>: When rates go down, inflation generally increases, and vice versa. As a result, you may feel the impact of lower interest rates on your budget in the form of higher prices.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. You\u2019ll earn more\u2014or less\u2014interest on your savings.<\/h3>\n\n\n\n<p>Changes in the overnight rate also affect the interest earned on savings and guaranteed investment certificates (GICs). Generally, the higher the overnight rate, the more interest you\u2019ll earn on your savings. Conversely, when rates drop, the amount of interest you\u2019ll earn from your savings account, or when opening a new GIC, will go down.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. The performance of your portfolio may change.<\/h3>\n\n\n\n<p>Interest rates also influence the stock market. In general, the stock market reacts favorably to rate cuts, so you may see a boost in your portfolio when rates go down. However, the impact of interest rates on the market is complex, and the impact on your portfolio depends on your holdings and investment strategy.&nbsp;<\/p>\n\n\n\n<p>Amid rate fluctuations, it can be tempting to adjust your portfolio to adapt to the economy. However, short-term market volatility may not impact your long-term goals. It&#8217;s a good idea to connect with your advisor to discuss any concerns you may have, and work together to ensure your investment strategy supports your goals.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Monetary tools go beyond interest rates<\/h2>\n\n\n\n<p>In addition to interest rates, central banks have other tools at their disposal to ensure financial and economic stability.<\/p>\n\n\n\n<p>One popular tool is the reserve requirement ratio, which determines how much commercial banks can loan to customers. A lower ratio means that financial institutions can lend more, which can in turn fuel economic growth. Central banks can also buy open market securities (typically longer-term government bonds) to increase the amount of cash in the economy. The maneuver is called quantitative easing, a relatively new form of monetary policy.<\/p>\n\n\n\n<p>In the past decade, an era of \u201ceasy money\u201d partly fueled an economic boom, economists say, lifting the fortunes of companies and consumers. When credit is plentiful, companies tend to ramp up hiring and production. It also buoys the stock markets and pushes up asset prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Central banks aren\u2019t immune to losses<\/h2>\n\n\n\n<p>Monetary policy influences more than company bottom lines and people\u2019s pocketbooks. Central banks themselves can also feel the squeeze of rising interest rates. That\u2019s because a central bank\u2019s balance sheet holds a number of assets (say, bond-buying revenue and investments) as well as liabilities (like the cost of paying interest on deposits from the country\u2019s financial institutions).<\/p>\n\n\n\n<p>Typically, a central bank\u2019s assets should exceed its liabilities, with profits distributed to the government. But when interest rates rise, so does the amount a central bank owes its creditors\u2014and when that column exceeds its assets, a bank may start to actually&nbsp;<em>lose<\/em>&nbsp;money.<\/p>\n\n\n\n<p>In 2022, the Bank of Canada recorded its first loss in its 87-year history,&nbsp;<a href=\"https:\/\/www.bankofcanada.ca\/2022\/11\/quarterly-financial-report-third-quarter-2022\/\" target=\"_blank\" data-dig-id=\"LP-89574-af977876\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"$522 million in the third quarter\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">$522 million in the third quarter<\/a>. However, these losses won\u2019t interfere with the bank\u2019s ability to carry out monetary policy.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Align your portfolio with your goals in a changing economy<\/h2>\n\n\n\n<p>As investors, it\u2019s helpful to understand that the decisions central bankers make have ripple effects that can play out on your purchasing power, your job prospects and your financial wellbeing.<\/p>\n\n\n\n<p>To learn more about how the central bank\u2019s decisions may affect your finances, and discuss how the economy may impact your investment goals,&nbsp;<a href=\"https:\/\/www.rbcroyalbank.com\/book-an-appointment\/book-an-appointment.html\" data-dig-id=\"LP-89574-8d34000a\" data-dig-label=\"connect with your advisor\" data-dig-action=\"link click\" data-dig-category=\"LP\" class=\"rbc-link-format\">connect with your advisor<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-rbc-rbc-default-collapsible\"><p><button class=\"collapse-toggle collapsed\" data-target=\"#collapse834a1009\" data-toggle=\"collapse\" aria-expanded=\"false\" aria-controls=\"collapse834a1009\" data-dig-id=\"LP-58010-834a1009\" data-dig-category=\"LP\" data-dig-action=\"accordion closed\" action-closed=\"accordion closed\" action-opened=\"accordion open\" data-dig-label=\"Things our lawyers want you to know\"><span>Things our lawyers want you to know<\/span><span>Things our lawyers want you to know<\/span><\/button><\/p><div class=\"collapse-content collapse\" id=\"collapse834a1009\">\n<div class=\"wp-block-rbc-collapsible-inner-block collapse-inner\">\n<p>This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.<\/p>\n\n\n\n<p>Mutual funds are sold by Royal Mutual Funds Inc. (RMFI). Guaranteed investment certificates and RBC Investment Savings Accounts are offered through Royal Bank of Canada and may be held in RMFI investment accounts where RMFI holds the asset in its name, as nominee. RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.<\/p>\n\n\n\n<p>Investment advice is provided by Royal Mutual Funds Inc. (RMFI). RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.<\/p>\n<\/div>\n<\/div><\/div>\n\n\n\t\n\t<div class=\"wp-block-tk-spacer id-57699af4-ec7f-46b5-96c9-280839765deb\" aria-hidden=\"true\"><\/div>\n\t\n\n\n<p class=\"has-text-align-center h5 mar-b\"><strong>Share This Article<\/strong><\/p>\n\n\n\n\t\t<div class=\"socials-block\">\n\t\t\t    <div class=\"social-links mob-mar-b-hlf mob-mar-t-hlf\">\n            <a class=\"social-button-wrapper sharing-custom sharing-email\" href=\"mailto:?subject=How Central Banks Shape the Economy \u2014 And Impact Your Finances &#038;body=Hi, I thought you might be interested in this article from RBC My Money Matters: https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/inspired-investor\/investing-academy\/a-bank-with-a-mission-how-central-banks-shape-the-economy-and-your-money-decisions\/\">\n        <img decoding=\"async\" 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class=\"wp-block-tk-spacer id-4a618c02-e1cd-4420-ab57-2b71d3cd3b4a\" aria-hidden=\"true\"><\/div>\n\t\n\n\n\t\t\t<div class=\"wp-block-rbc-single-post-topics related-topics-links\">\n\t\t\t\t<p class=\"h5 mar-r-hlf\">Topics:<\/p>\n\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/economy\/\" class=\"btn topic mar-t-0 mar-r-qtr mar-b-hlf\">Economy<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n\n\n\n<section class=\"wp-block-rbc-section-block  pos-rel mob-pad-t-dbl\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner\" style=\"border-radius:0x\">\n<h2 class=\"wp-block-heading mar-b mob-mar-b-dbl mar-t-0\" id=\"h-read-this-next\">Read This Next<\/h2>\n\n\n\t\t\t<div class=\"related-posts-type-2\">\n\t\t\t\t<div class=\"related-post-list\">\n\t\t\t\t\t<ul class=\"grid-wpr eh-wpr\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li class= 'grid-one-third grid-tb-full grid-mob-full mar-b'>\n\t\t\t\t\t\t\t\t\t\t<article class=\"col-wpr mar-b-0 mar-r-0 mar-l-0\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"postcard-img-ctr post-card-image col-md-12 col-xs-6 mob-mar-b-0 pad-l-0\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"930\" height=\"620\" src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/TDD-2.jpg?quality=80&amp;w=930\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Young man working at a desk with a laptop and looking at a paper desk calendar.\" srcset=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/TDD-2.jpg 930w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/TDD-2.jpg?resize=300,200 300w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/TDD-2.jpg?resize=768,512 768w\" sizes=\"auto, (max-width: 930px) 100vw, 930px\" 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Learn how central banks work\u2014and how their decisions may affect you.<\/p>\n","protected":false},"author":10,"featured_media":70495,"parent":57991,"menu_order":0,"template":"","meta":{"_acf_changed":false,"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"tags":[521],"rbc_content_type":[31],"rbc_audience":[],"rbc_lob_group":[71],"rbc_difficulty_level":[33],"rbc_mmm_category":[393,320,394,374,304],"class_list":["post-58010","rbc_my_money_matter","type-rbc_my_money_matter","status-publish","has-post-thumbnail","hentry","tag-economy","rbc_content_type-article","rbc_lob_group-investments","rbc_difficulty_level-beginner","rbc_mmm_category-inspired-investor","rbc_mmm_category-investing","rbc_mmm_category-investing-academy","rbc_mmm_category-investing-basics","rbc_mmm_category-money-academy"],"acf":{"contently_publication_id":"348638","custom_author":"Royal Bank of Canada","rbc_video_header":"","rbc_media_duration":"","rbc_video_keywords":"","rbc_video_description":"","rbc_video_upload_date":"","rbc_toc_for_mmm_tag":"h2","rbc_toc_for_mmm_limit":6,"rbc_toc_for_mmm":null,"rbc_toc_for_mmm_action":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<meta name=\"description\" content=\"Central banks play a pivotal role in managing the economy, which means their decisions can impact your finances. 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