Bank of Canada rate hike a pleasant surprise for savers: Dale Jackson
BNN Bloomberg
This week’s surprise interest rate hike by the Bank of Canada was another blow to the country’s over leveraged borrowers, but it was a double-blessing for the smaller sliver of the population that actually saves money, Dale Jackson writes for BNNBloomberg.ca.
The yield on the benchmark Government of Canada five-year bond is currently 3.75 per cent (from under 0.5 per cent), but is expected to rise further along with investment grade corporate bonds.
MACKLEM ON A MISSION
The second blessing is the Bank of Canada’s aggressive and unwavering commitment to prevent their savings from being gobbled up by inflation. This week’s interest rate increase came with the stipulation that it will raise rates further in the coming months if cost of living increases don’t fall closer to its two per cent target rate.
