Bank of Canada interest rates rising is unlikely this fall!
Wednesday October 25th Canadians will find out if Stephen Poloz will rise the Bank of Canada’s prime rate for a third time in 2017. The prospect is real but the likelihood, according to chief economist at CIBC Capital Markets Avery Shenfeld, is low because the jury is still out on the effects of the two previous hikes this year. Federal Finance Minister Bill morneau will be outlining the fall fiscal financial forecast on Tuesday the 24th, coupled with the Bank of Canada news – the week promises to be interesting regarding national finance.
How will middle class Canadians deal with the financial climate?
The federal government has back peddled on recent proposed changes to tax law – the latest being an idea to repeal the tax benefit to some people with diabetes. Middle class Canadians are paying very close attention to what the government is doing and keeping score. The outcome of the 2019 election will greatly depend on how middle class Canada votes. Owners of small businesses and family households earning more than $150,000.00 per year will be the canary in the coal mine regarding fiscal certainty. The other major factor but part of the same equation; household debt! Don’t get caught with your pants down! Now is the time to take advantage of the solutions around you in order to prepare for rising interest rates.