With 2019 well underway, we thought it would be beneficial to revisit a topic we talked about in 2018 (click here to read the 2018 post). The 2018 calendar year was full of volatility and economic ups and downs compared to recent years. One economic factor that saw a lot of movement was interest rates.... Continue Reading →
Inflation is a key factor when evaluating an economy. If inflation is at abnormally high levels, there are many negative side effects. These side effects may include the BoC (Bank of Canada) raising interest rates, which as we know, decreases the purchasing power. Inflation can be defined as a 'sustained increase in the general level... Continue Reading →
Recently released first quarter numbers for economic growth in Canada might seem a bit underwhelming. Stephan Poloz, the Governor of Bank of Canada, outlined 2 reasons for this; a slowing of the housing market and weak exports. However, even with the unsatisfactory results from Q1, the outlook for Q2 is still fairly optimistic. Rather than... Continue Reading →
If we look back at recent history, we can all remember the global economic crisis of 2008. Of course, many of us know that this crisis was triggered by a bubble in residential housing propped up by the availability of sub-prime mortgages. The collapse of the housing market had such a widespread effect that there... Continue Reading →
When considering the impact personal finances have in one's life, its hard to believe that many never consult financial professionals. In a survey conducted by Harris Poll, 62% of respondents claimed to have no financial advisor of any kind. An astonishing number, since financial decisions are some of the biggest and most emotionally impactful decisions... Continue Reading →
For those of us that tune into the financial news regularly, we know that our central banks - both in the US and in Canada - are a little more hawkish than they've been in the past few years. In simple terms, they're raising interest rates. Slowly. Generally, interest rates only increase when economic fundamentals... Continue Reading →
Last week we talked about some of the negative aspects of rising interest rates. This week we will outline the positive economic impact of a rising interest rate. In an ideal world, reversion to a 6% bank lending rate would be healthy. Loan rates for business purposes would be around 6% interest and the corresponding... Continue Reading →
This past week, the Bank of Canada announced an increase in the BoC rate of 0.25%, causing the chartered banks to increase their prime rate to 3.45%. The chartered bank's prime interest rate is the basis for all retail lending. A familiar term is prime plus 2%. Prime plus 2% would mean the effective interest... Continue Reading →
