Everything is up

Everything is up but the paycheques. From food, gas, housing and even Netflix. Central banks around the world have been raising rates in the hopes of consumers putting the brakes on their spending. However if we stop spending too quickly it will put us into a recession. On the other side of it we still need to spend money just to live so something has to give.

The economy relies on consumers and businesses spending money but if rates and products rise too quickly then everyone will cut back on the spending all at once. The balance they say is a slow and steady change but that has not been happening with interest rates nor gasoline. It feels like a big game of chicken, someone has to give first and from all indications it seems like us cutting back on spending will happen well before prices and rates start to come back down.

The Bank of Canada raised it’s overnight lending rate this week by 50 basis points and further indicate that another rate increase maybe coming with the next meeting in July. Also with Russia showing no signs that is is through with their invasion of Ukraine so world oil prices will continue to stay high. So until these two things signal a change of course, tighten the purse strings as higher prices may be around for a while.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here