Domestic economy: interest rate hikes are coming, but will they be enough to control property prices?

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JP Morgan expects Bank of Canada rate hike later this month

JP Morgan economists have raised their rate hike forecasts for the Bank of Canada, and now see the central bank’s first increase coming at its Jan. 26 meeting. Bank of Canada Governor Tiff Macklem has said he expects rates to rise in the “middle” of this year, but JP Morgan argues that labor market tightening, inflation and the resilience of the Canadian economy are too important to ignore.

Pattie Lovett-Reid: Bring higher rates

Speaking of which, CTV Chief Financial Commentator Pattie Lovett-Reid says that at this point, moving to rates would likely be put more money in your pocket. His reasoning is that even with rate hikes, interest charges would still be paltry, meanwhile they could curb runaway inflation.

Higher rates may not be enough to keep house prices under control

While higher interest rates could bring inflation back to earth, Canadian real estate broker Royal LePage don’t think it will be enough to control house prices. “As rising interest rates slow home price appreciation, rising borrowing costs will hit historic lows and the increases may not be enough to offset the strong upward price pressure from the housing supply crisis in Canada,” the company said in a statement.

Closing racial wealth gap would strengthen economy: RBC

An RBC report shows addressing the racial wealth gap between white Canadians and visible minorities would stimulate the economy and improve Canada’s global competitiveness. The report says visible minorities are less likely to own wealth-generating assets like homes, investments and businesses. However, if visible minorities owned businesses at the same rate as the general population, more than 100,000 new businesses would be created, each with the potential capacity to hire multiple workers, according to RBC.

Have your dream wedding, while staying within your budget

You’ll remember your wedding day forever – but one thing you don’t want to last forever is the remaining financial burden of your special day. According to experts, there are ways to have the wedding you want while staying within your budget, including cutting expenses without your guests noticing.

Don’t Forget Estate Planning When Reviewing Your Finances

It’s the time of year when many Canadians use the new turn of the calendar to review their finances, but make sure that includes your wills and estate planning. Experts tell The Canadian Press that changes may not be necessary, but you should read it carefully to make sure it’s up to date according to your wishes.

TIP JAR

19%

– A new research report from the Bank of Canada has found that investors have taken into account about a fifth of all home purchases since 2014

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