Bank of Canada rate pause opens sweet spot for savers: Dale Jackson
BNN Bloomberg
As borrowers struggle with higher debt payments, savers now find themselves nestled in a sweet spot between high yields and tame inflation.
On Wednesday the central bank held its benchmark interest rate at a 22-year high of five per cent after an 18-month battle with inflation that took rates up from nearly zero.
As borrowers struggle with higher debt payments, savers now find themselves nestled in a sweet spot between high yields and tame inflation.
Posted rates on one-year guaranteed investment certificates (GICs), for example, are currently as high as 5.65 per cent. Investors have not seen risk-free returns this high for over two decades. And with signs the Bank of Canada is winning the battle against inflation, less of that yield is being gobbled up by higher living costs.
