From the Bank of Canada's steady hand to a surge in housing starts and Ottawa's new financial crime-fighting agency — here are the five money stories every Canadian should have on their radar this morning. 1 Bank of Canada Rate Holds at 2.25% — Next Decision June 10 The Bank of Canada kept its overnight rate at 2.25% on April 29 and has signalled it intends to stay put for now. Governing Council is keeping a close eye on Middle East conflict spillover into energy prices, ongoing U.S. tariff uncertainty, and whether inflation — currently hovering just above the 2% target — becomes entrenched. Bond markets are currently pricing in roughly an 18% chance of a 25-basis-point cut by the July 15 announcement, making a move at the June 10 meeting unlikely. 💡 What it means for you: Variable-rate mortgage and HELOC holders can exhale — no surprise hikes on the horizon. But don't expect big rate relief either; the "lower-for-longer" window appears to be closing. 2 Mortgage...
- Reevaluate your investment strategies: Experts suggest that now is a good time to reevaluate your investment strategies and prepare for the evolving market conditions. Although Bank of Canada Governor Tiff Macklem has said it is too early to consider rate cuts, the central bank could begin cutting interest rates as early as April or May, according to forecasts from TD. Falling interest rates will be the story of 2024, so it’s important to invest accordingly.
- Consider low-cost dividend-focused index funds: Investing in low-cost dividend-focused index funds can help you generate passive income at a low cost for life.
- Be cautious with GICs: Last year, many investors chose to park money in savings or a short-term Guaranteed Investment Certificate (GIC), earning risk-free returns of 5 per cent or more. Although it was an effective strategy in a high-interest-rate environment, GIC rates are already falling, and completely opposite market forces are starting to take shape. Canadians looking to simply protect their cash in 2024 could be in for a “rough year,” potentially missing out on greater gains elsewhere.
- Prepare for the evolving market conditions: With the market conditions evolving, it’s important to prepare for the changes. Falling interest rates will be the story of 2024, so it’s important to invest accordingly.
Comments
Post a Comment