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5 Things to Know Today — June 21, 2026

  Whether you're starting your week or wrapping up your weekend, here are the five Canadian money stories shaping your financial picture right now. 1 Canada Is Technically in a Recession — And the Political Fight Is On Canada's GDP contracted 0.1% on an annualized basis in Q1 2026, following a 1% decline in Q4 2025 — two consecutive quarters of negative growth that meet the textbook definition of a technical recession. Prime Minister Mark Carney has called it a "settling-in period" tied to his government's restructuring of the economy in response to the U.S. trade war. Conservative Leader Pierre Poilievre has been relentless in his counter-offensive, pointing to rising insolvencies, job losses and food bank usage as proof that the downturn is real, not technical. Many economists, including BMO's chief economist Douglas Porter, have noted that a future revision to Statistics Canada's data could erase the slim 0.1% contraction — meaning this may not ultimate...
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How to Prepare Your Investments for Rising Rates in Canada

 

On October 25, the Bank of Canada made a decision: they kept the interest rates steady at 5%. This means that investors need to adjust their portfolios to cope with the new normal of higher borrowing costs and lower bond prices. Here are some tips on how to do that:

1. Reduce your exposure to long-term bonds. Long-term bonds are more sensitive to interest rate changes than short-term bonds, so they will lose more value when rates go up. You can switch to shorter-term bonds or bond funds, or use bond ladders to stagger the maturity dates of your bonds.

2. Diversify your income sources. Interest income from bonds will likely decline as rates rise, so you may want to look for other sources of income, such as dividends, real estate investment trusts (REITs), or preferred shares. These assets can provide steady cash flow and may also benefit from economic growth and inflation.

3. Consider adding some inflation protection. Higher interest rates often come with higher inflation, which erodes the purchasing power of your money. You can protect yourself from inflation by investing in assets that tend to rise in value when prices go up, such as commodities, gold, or inflation-linked bonds.

4. Review your asset allocation. Higher interest rates may affect the performance of different asset classes, so you may need to rebalance your portfolio to maintain your desired risk-reward profile. For example, you may want to reduce your exposure to growth stocks that rely on cheap debt to fund their expansion, and increase your exposure to value stocks that have strong cash flows and dividends.

5. Seek professional advice. Adjusting your portfolio for higher interest rates can be complex and challenging, especially if you have a long-term horizon and multiple goals. You may want to consult a financial planner or advisor who can help you create a personalized plan that suits your needs and preferences.

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