Increase in the Bank of Canada interest Rate

There will be rumblings, guesses, and prognostications what an interest rate increase will mean for you, your company and the country over the next few weeks. For some, this will be a good thing (your bank deposit may actually earn enough interest to pay your monthly bank fees, or your purchases from the USA just got cheaper). For some, it will be bad. That new house you were going to buy just went out of reach because you can’t afford the payments now. Others won’t be affected at all because the market they sell to (and buy from) is local so the exchange is inconsequential (farmers market?).

It will be interesting to watch the papers, magazines, and TV to see if media think this is a good thing or not?

By the way, when one writer mentioned that ‘Canadian households and companies are piling up debt faster than any other developed nation in the world, adding $1 trillion since 2011. A dubious honor, to be sure.’ I wonder if he really understood what he was saying? Did he consider that Canada was the best-performing economy of the G7 over the last several years? Does he know HOW we did it?…we financed it. Yes, now is time to pay the piper but at least we are not bankrupt and homeless while we do it.

What higher interest rates mean for real estate, debt, and the economy

 

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