Skip to main content

Featured

Why Interest Rates Matter for Canadians

Interest rates are the single most powerful lever in Canada's economy.  When the Bank of Canada adjusts its policy rate, the effects reach every household—from the cost of carrying a mortgage to the return on a savings account. With rates currently at 2.25% and significant uncertainty ahead, understanding how rates work has never been more important for your finances. What Is the Bank of Canada's Policy Rate? The Bank of Canada sets the overnight policy rate—the interest rate at which major banks lend money to each other. This rate serves as a benchmark that influences borrowing and lending costs across the entire economy. When the Bank raises or lowers this rate, commercial banks adjust their prime rates accordingly, which directly affects the rates you pay on mortgages, lines of credit, and other loans. The Bank's primary goal is to keep inflation near its 2% target. When inflation runs too hot, the Bank raises rates to cool spending. When the economy slows, it cuts rates...
Post a Comment
Read more

article

Labels

Stock Market News: Weekly Recap



The stock market ended the week on a positive note, as major indexes edged higher on Friday. The S&P 500 gained 0.2%, the Dow Jones Industrial Average rose 0.1%, and the Nasdaq Composite added 0.3%. The gains came after a week of solid earnings reports and economic data, which boosted investor confidence and optimism.

Some of the highlights of the week included:

- The third-quarter GDP report showed that the U.S. economy grew at an annualized rate of 6.2%, slightly below expectations but still robust.

- The Federal Reserve announced that it will start tapering its monthly bond purchases by $15 billion in November, signaling its confidence in the economic recovery and inflation outlook.

- The October jobs report showed that the U.S. economy added 531,000 jobs, beating expectations and marking the strongest monthly gain since July. The unemployment rate fell to 4.6%, the lowest level since March 2020.

- Several major companies reported strong earnings results, such as Apple, Amazon, Facebook, Google, Microsoft, Starbucks, and Tesla.

The stock market has been resilient in the face of various challenges, such as supply chain disruptions, labor shortages, rising inflation, and the spread of the delta variant. The S&P 500 is up about 24% year to date, and is on track for its sixth consecutive month of gains.

Looking ahead, investors will be watching for more earnings reports, as well as data on consumer confidence, inflation, retail sales, and industrial production. The market will also be paying attention to any developments on the infrastructure and social spending bills in Congress, as well as the global climate summit in Glasgow.

Labels:

Comments

Post a Comment