Federal finances remain vulnerable to fluctuating interest rates

Federal finances remain vulnerable to fluctuating interest ratesBy Alex Whalen and Milagros Palacios The Fraser Institute There’s been a lot of movement in Ottawa lately, including Bill Morneau’s resignation as federal Finance minister, with Chrystia Freeland taking his place. Unfortunately, the federal government’s recent fiscal snapshot only added to the uncertainty. Why? Because there’s no plan to restore sustainability in federal finances. This…

Canadian economy will stall in 2020

The next two years will probably bring feeble increases in GDP, in line with 2019’s uninspiring performance. Job creation is likely to decelerate

Canadian economy will stall in 2020As the clock winds down on 2019, it’s time to ponder what the coming year may have in store for the Canadian economy. To provide some context, 2019 hasn’t been a great year for the economy, with inflation-adjusted gross domestic product (GDP) expanding by around 1.6 per cent. This was less than growth in both…

Why mortgage pre-approval should always be the first step

Jacob Black of RateSupermarket.ca talks about taking the uncertainty and disappointment out of the home buying process

Why mortgage pre-approval should always be the first stepJacob Black is the managing editor for RateSupermarket.ca. What is the cost of homeownership in Calgary compared to other major Canadian cities? Black: Calgary is the sixth-most expensive city to live in, according to our data. You would need to be in the top 25 per cent of income earners in Canada to buy a…

Canadians worried about rising interest rates

MNP report says millennials have never experienced a time when credit wasn’t cheap and easily accessible

Canadians worried about rising interest ratesCanadians are increasingly fearful of interest rate hikes, according to the latest MNP Consumer Debt Index, which was released on Tuesday. MNP said the fear of a rate increase has intensified over the past few months. One-third of Canadians express concern that rising rates could move them towards bankruptcy. That’s a six-point increase since June.…

Alberta leads country with highest level of average debt

Calgary and Edmonton had the highest levels of debt of major Canadian cities

Alberta leads country with highest level of average debtThe average consumer debt continues to rise in Alberta with the highest level in the country, according to the latest Equifax Canada Q2 2018 National Consumer Credit Trends Report which was released on Wednesday. Calgary and Edmonton had the highest levels of debt of major Canadian cities and Alberta had the highest for all the…

Canadian average net worth growing but interest rates a challenge

‘Canadians paid $9.0 billion more in interest charges in 2017 than they did the prior year,’ says Environics Analytics report

Canadian average net worth growing but interest rates a challengeAverage household net worth in Canada continues to grow but higher interest rates are putting increased pressure on discretionary spending, according to a new report released Monday by Environics Analytics. “For many Canadians the rising interest rates over the past year have already cost them the equivalent of an extra mortgage payment,” said Peter Miron,…

Quit blaming workers for rising inflation

By raising interest rates, central bankers are moving away from one of their prime purposes: to maximize employment

Quit blaming workers for rising inflationFinancial markets were in a tizzy last week. The Dow Jones industrial average wobbled, falling over 1,500 points in near-panic selling over several days. And then, as if on cue, stock markets all over the world were soon 'correcting' with the Dow. What caused markets to fall? According to the experts, there were several root…

Imagining the worst, getting the best out of your business

The exchange rate could shift, interest rates could rise, NAFTA could be rewritten or buried. Do you have strategies to deal with such changes?

Imagining the worst, getting the best out of your businessOptimism in business is good, but business operators would do much better in the long run if they looked more closely at the down side and imagined the worst. Why would you go into business unless you were an optimist, really believing you’ll beat the odds and gain the freedom, flexibility and potential for great…

Aging population upending current interest rate policy

With the number of seniors living off retirement income rising, increasing interest rates no longer a precursor to a cooling economy

Aging population upending current interest rate policyCanadians are constantly reminded that we’ve let ourselves get too deeply into debt and if the cost of that debt – interest rates – increases, we’ll be in deep yogurt. To the extent that such debt is mortgage-based and the average price of homes has been rising, this debt should be manageable. I don’t expect…

The hard truth about soft economic policy

You don't have to be an economist to know that rising interest rates will hurt a lot of Canadians but especially young families

The hard truth about soft economic policyOver the past few months, the Bank of Canada has faced a terrible dilemma: keep interest rates low or raise them to combat potential inflation. It seems the decision has been made – on July 12, the bank raised interest rates for the first time since the 2008 financial crisis. If this is the start…