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The Bank of Canada slashed the policy interest rate by 25 basis points in the first week of June 2024, marking its first monetary policy easing since March 2020. The market widely expected this major move, as the central bank had signalled its intention to ease monetary conditions in response to gradually easing inflationary pressures.
Overall, lower interest rates are likely to stimulate economic activity by making borrowing cheaper for consumers and businesses alike. This strategic rate cut could set the stage for a hot month on the TSX as long-term investors look to benefit from the expectations of favourable economic conditions. With interest rate and inflation-sensitive sectors like banking and retail expected to gain, it could be the right time to invest in some fundamentally strong TSX stocks from these sectors. Here are two of the best stocks that could offer attractive returns if…
