Skip to main content

Featured

5 Things to Know Today: BoC Hike Odds Near 80%, Oil Tops US$100, Loonie Hits 5-Week High

  Canadian Money Brief  |  Saturday, October 24, 2026 The Bank of Canada is expected to raise rates on Wednesday, oil is back above US$100 and stocks slipped on AI worries. Here are the five things to know this Saturday, and what each one means for your wallet. 1 The Bank of Canada is widely expected to hike on Wednesday Markets are putting roughly an 80% chance on a quarter-point increase at the Bank of Canada’s Oct. 28 decision, which would lift the policy rate from 2.25% to 2.50%. A majority of economists polled by Reuters also expect a second hike by the end of March. The shift followed hawkish comments from Governor Tiff Macklem about a higher inflation outlook driven by oil. What it means for you Every 0.25-point increase adds about $250 a year (roughly $21 a month) for each $100,000 of prime-linked debt, such as a variable-rate mortgage or HELOC. Fixed-rate holders are not hit directly, but renewals are being priced off higher bond yields. Savers may see HISA and...
Post a Comment
Read more

article

Labels

Bankruptcies Surge in Canada Amid Economic Challenges

 

In a year marked by financial turbulence, business insolvencies in Canada have reached unprecedented levels. According to data from the federal Office of the Superintendent of Bankruptcy, 2023 witnessed the highest number of business insolvencies in 36 years of recorded history. The surge was particularly pronounced, with filings rising 35% in the fourth quarter compared to the previous quarter and more than doubling compared to the same period a year ago.

Key Points:

  1. Record High: The total number of businesses filing for insolvency was the highest in 13 years.
  2. Mainly Bankruptcies: The rise was primarily driven by bankruptcies rather than renegotiations of terms.
  3. Hardest-Hit Sectors: Accommodation and food services, retail, and construction experienced the most significant impact.
  4. Financial Challenges: Businesses grappled with rising input costs, wage expenses, and debt servicing costs throughout the pandemic.
  5. Debt Burden: Debt taken on during the pandemic has left some Canadian businesses unviable or in need of debt restructuring.
  6. Government Loans: Business owners who couldn’t repay government pandemic loans (such as CEBA) by the January 19 deadline now face interest charges and monthly payments.

Economic Outlook:

  • Interest Rate Pressure: The additional costs of servicing debts due to higher interest rates may strain businesses already on a precarious edge.
  • Consumer Spending Decline: The weakening economy has also impacted consumer spending, further adding pressure to businesses’ bottom line.
  • Room for Recovery: Some businesses may struggle to manage increased monthly bills, especially if sales remain challenging.

As the Canadian economy navigates these challenges, businesses face a critical juncture. The road to recovery will require resilience, adaptability, and strategic financial management.


Labels:

Comments

Post a Comment