The Bank of Canada is pushing ahead with its benchmark rate to bring inflation back to its target. That means savers will benefit thanks to higher rates of return on their high-interest savings accounts, GICs and fixed-income investments, writes personal finance columnist Dale Jackson. But there are two sides to every coin. While savers celebrate, borrowers will take a hit.
Inflation far outpaces wages: BMO
BMO Capital Markets Chief Economist Doug Porter explained exactly how much wage growth in Canada has lagged behind the skyrocketing cost of living (which wouldn’t surprise many Canadians, especially those on low or fixed incomes). Porter said the pace of inflation is quasi-double wage growth.
One-Third of Canadians Don’t Earn Enough to Pay Their Bills: Poll
“It’s a little annoying. It seems almost unrealistic,” said Grant Bazian, president of MNP Ltd. The company’s latest poll showed that 31% of Canadians said they do not earn enough income pay basic monthly expenses. Almost half (49%) said they were less than $200 from insolvency. The poll was conducted ahead of the Bank of Canada’s massive interest rate hike this month, showing that Canadians are already feeling the effects.
Housing could peak this spring: RBC
The Canadian housing market has broken records in terms of soaring prices, shrinking supply and increasing demand, but could some relief be on the horizon for buyers? ? RBC deputy chief economist Hogue said the housing market could peak this spring. Find out why he thinks business activity could ‘slow faster than expected’ here.
Canadians are increasingly using their home equity
House prices may be starting to slow, but skyrocketing real estate values are pushing Canadians draw more and more on home equity lines of credit as the easing of pandemic restrictions creates the temptation to spend more, according to Statistics Canada. Data showed the home equity loan balance grew at the fastest monthly rate in a decade in February.
Browse all the ways you can save for a down payment
TFSA. RRSP. And now the FHSAs. No, it’s not alphabet soup, it’s the plethora of different savings and investment vehicles available to Canadians that can be used to help save for a down payment. . Here’s a breakdown of how each of them works, as well as the advantages and disadvantages of each account.
Scotia says Bank of Canada has case for full point hike
Scotiabank argues that the Bank of Canada has a “strong case” to deploy up to one percentage point interest rate hikes at its next policymaking meeting. Read why The bank’s head of capital markets economics, Derek Holt, said there was no reason the central bank should still have its benchmark rate at current levels.
TIP JAR
27.8%
– This is how much margarine prices rose in March year over year. Here is an overview price increases of other grocery staples.
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