J.P. Morgan sees Bank of Canada rate hike coming later this month
 
Economists at J.P. Morgan have moved up their rate hike forecast for the Bank of Canada, and now see the central bank’s first increase coming at its Jan. 26 meeting. Bank of Canada Governor Tiff Macklem has said he expects rates to rise in the “middle quarters” of this year, but J.P. Morgan argues the tightening labour market, inflation and resilient Canadian economy are too much to ignore.
 
Pattie Lovett-Reid: Bring on higher rates
 
Speaking of which, CTV Chief Financial Commentator Pattie Lovett-Reid says at this point, moving on rates would likely put more money into your pocket. Her rationale is that even with rate increases, interest charges would still be paltry, meanwhile, they could dampen runaway inflation.  
 
Higher rates might not be enough to tame home prices though  
 
While higher interest rates might bring inflation back down to Earth, Canadian real estate brokerage Royal LePage doesn’t think it will be enough to tame home prices. “While rising interest rates slow house price appreciation, higher borrowing costs will be coming off historical lows and the increases may not be enough to offset the significant upward price pressure from Canada’s housing supply crisis,” the firm said in a release.
 
Closing the racial wealth gap would strengthen the economy: RBC
 
A report from RBC shows tackling the racial wealth gap between white Canadians and visible minorities would boost the economy and improve Canada’s global competitiveness. The report said visible minorities are less likely to own wealth-generating assets like homes, investments and businesses. However, if visible minorities owned businesses at the same rate as the overall population, more than 100,000 new businesses would be created, each with the potential ability to hire multiple workers, according to RBC.  
 
Having your dream wedding, while still staying in your budget
 
You’ll remember your wedding day forever – but one thing you don’t want to last forever is the financial burden left over from your special day. There are ways to have the wedding you want while staying in your budget, according to experts, including scaling back spending without your guests noticing.   

Don’t forget estate planning when reviewing your finances
 
It’s the time of the year when many Canadians use the fresh turn of the calendar to review their finances, but make sure that includes your will and estate planning. Experts tell The Canadian Press that changes may not be necessary but you should give it a read through to ensure it’s up to date in accordance with your wishes. 
 

 

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- A new research report from the Bank of Canada found investors have accounted for about one-fifth of all housing purchases since 2014