In recent years, Canada's central bank, the Bank of Canada, has adjusted its benchmark policy interest rate to manage inflation and economic growth. Fluctuations in these interest rates can have significant transmission effects on various financial markets, including the stock market.
Fig. 3 shows how the Canadian benchmark policy interest rate changed over a nine-year period.
| Date | Policy Rate (%) |
|---|---|
| 2011-01-01 | 4.25 |
| 2011-06-01 | 3.50 |
| 2012-01-01 | 2.00 |
| 2012-08-01 | 1.00 |
| 2013-01-01 | 0.75 |
| 2017-12-01 | 0.50 |
| 2018-06-01 | 1.00 |
| 2019-01-01 | 1.75 |
Using Fig. 3, explain what is likely to have happened to Canadian share prices at the start and the end of the period shown.
