An economist explains what the Bank of Canada’s interest rate hike to five per cent means for Canadians.
The Bank of Canada has just hiked its interest rate by another 25 points to five per cent — the second quarter-point hike since June’s interest rate increase to 4.75 per cent. The central bank has been steadily increasing interest rates over the past three years in an effort to tame inflation.
The labour market has remained tight despite the unemployment rate increasing by two points to 5.4 in June. However, the unemployment rate is still below the pre-pandemic average of 5.7 per cent. Fortunately, price growth has slowed for some categories, such as durable goods which includes automobiles and furniture. And the price of cellular services has decreased by 8.2 per cent over the past year.
In fact, less than 15 per cent of new mortgages are locked in for fixed-rate five year terms, and less than 20 per cent are variable rate. Prior to August 2022, fixed-rate terms of five years or longer were the preferred choice for mortgage borrowers.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion: Will Canadians shift news habits when Bill C-18 takes effect?Polling by Research Co. and Glacier Media suggests the consequences of the Online News Act could convince Canadians to change up how and where they find their news
Read more »
Financial pressure building on several fronts for Canadians as Bank of Canada decision looms, poll findsMore Canadians are likely to declare bankruptcy and saving for retirement has been pushed firmly to the back burner. Find out more.
Read more »
Financial pressure building on several fronts for Canadians as Bank of Canada decision looms, poll findsMore Canadians are likely to declare bankruptcy and saving for retirement has been pushed firmly to the back burner. Find out more.
Read more »
Financial pressure building on several fronts for Canadians as Bank of Canada decision looms, poll findsMore Canadians are likely to declare bankruptcy and saving for retirement has been pushed firmly to the back burner. Find out more.
Read more »
Financial pressure building on several fronts for Canadians as Bank of Canada decision looms, poll findsMore Canadians are likely to declare bankruptcy and saving for retirement has been pushed firmly to the back burner. Find out more.
Read more »
Financial pressure building on several fronts for Canadians as Bank of Canada decision looms, poll findsMore Canadians are likely to declare bankruptcy and saving for retirement has been pushed firmly to the back burner. Find out more.
Read more »