What You Need to Know About Canada’s Economy
In uncertain times, it’s essential for Canadians to stay informed about the economy. This week, FP’s top videos shine the spotlight on the economic landscape and how Canadians are coping.
Canada Needs to Get its Economy Back on Track
Anne McLellan, a senior advisor for Bennett Jones LLP and former federal cabinet minister, sat down with Financial Post’s Larysa Harapyn to discuss Canada’s shortcomings. McLellan is part of the Coalition for a Better Future, a group working on a new economic and social plan for the country.
According to McLellan, Canada needs to get its economy back on track by addressing its weaknesses. "We need to focus on innovation, investment, and exports," she explained. The coalition’s plan aims to create jobs, grow the economy, and improve living standards for Canadians.
Don’t Expect the Fed to Slow Down this Year
In a separate video, Chris Kerlow, senior portfolio manager & investment adviser at Canaccord Genuity Corp., shared his insights on how central banks’ fight against inflation with aggressive rate hikes is affecting markets and the economy. "I don’t think we’ll see any significant slowdown from the Fed this year," Kerlow stated.
The Bank of Canada has been raising interest rates to combat inflation, which has had a ripple effect on consumers and businesses. However, Kerlow believes that the Fed will continue to hike rates aggressively to control inflationary pressures.
Inflation Data: What Does it Mean for Consumers and Interest Rates?
Financial Post’s Stephanie Hughes broke down the latest inflation data, which showed cooling numbers for the second month in a row. While this is good news for consumers, it may not necessarily translate into lower interest rates.
Hughes explained that the Bank of Canada will need to weigh its options carefully before making any decisions on interest rates. "The bank’s primary concern is keeping inflation under control," she said. If inflation continues to cool, it could indicate a softer landing for the economy and potentially lead to lower interest rates.
Fixed vs Variable Mortgage Rates: What Are the Pros and Cons?
Mortgage broker Leah Zlatkin discussed the pros and cons of fixed versus variable mortgage rates as borrowing rates tick steadily higher. While fixed rates may offer stability, they often come with higher penalties for breaking contracts. On the other hand, variable rates can be more flexible but carry more risk.
Zlatkin advised homebuyers to carefully consider their financial situation before making a decision on which type of rate is best for them. "It’s essential to understand the terms and conditions of each option," she emphasized.
Listen to Down to Business
For in-depth discussions and insights into the latest Canadian business news, tune in to the Financial Post’s podcast, Down to Business. Available wherever you get your podcasts, this weekly series features expert analysis and commentary on major economic issues affecting Canada.
What You Need to Know About Canada’s Economy: A Summary
- The Coalition for a Better Future is working on a new economic and social plan for Canada.
- Central banks are fighting inflation with aggressive rate hikes, which may impact consumers and businesses.
- Inflation data has cooled for the second month in a row, but it may not necessarily lead to lower interest rates.
- Fixed versus variable mortgage rates carry different risks and benefits; homebuyers should carefully consider their financial situation before making a decision.
Stay informed about Canada’s economy by checking out FP’s top videos and staying up-to-date on the latest news and analysis. Whether you’re a seasoned investor or just starting to navigate the complex world of finance, this information can help you make informed decisions about your money and future.
Additional Resources
- Coalition for a Better Future: Learn more about the group’s mission and plans to revitalize Canada’s economy.
- Central Banks and Inflation: Understand how central banks are addressing inflationary pressures through rate hikes.
- Mortgage Rates: Compare fixed versus variable mortgage rates to determine which option is best for you.
Stay informed, stay ahead.
