Interest Rates Up… Again!
It has been an eventful week since our last correspondence. As anticipated, the Bank of Canada (BoC) decided to increase interest rates, a move that didn’t come as much of a surprise. With the recent 25 basis point hike, the BoC’s interest rate now stands at 5%—the highest we’ve seen since 2001. The Bank maintains its unwavering commitment to restoring price stability for Canadians, signifying a continued pursuit of a 2% inflation target.
Our CIO, Christine Tessier, anticipates that this development will provide a boost to certain investment areas, such as “high-quality fixed income, private debt, and multi-family/apartment residential themes.” ETFs like the Purpose HISF are already experiencing a positive impact, with yields currently standing at 5.31%. Should you wish to discuss the possibility of adding this low-risk, daily liquid fund to your portfolio, please feel free to reach out.
As I mentioned in the last newsletter, I was away last week at the British Columbia Bike Race (BCBR) on beautiful Vancouver Island. The week-long mountain biking adventure offered stunning landscapes, strenuous ascents, and thrilling trails. Across seven days, we covered over 253 km and climbed nearly 23,000 feet. I’m putting together a short video to share some highlights of the race and draw parallels between preparing for a race like this and managing your financial situation. Look out for it next week!
With my recent mountain biking experience still fresh, I thought I’d share a few fascinating tidbits about this sport:
- Mountain biking’s roots trace back to California in the 1970s, but the first purpose-built mountain bike wasn’t produced until 1979.
- It made its Olympic debut in the Atlanta Games in 1996.
- In recent years, mountain biking has branched out into several disciplines, with cross-country and enduro being my personal favorites.
Until next week,
Trevor & the Cherry Hill Team
P.S. Don’t forget to check our social media platforms early next week for videos on the BCBR, as well as my discussions with a mortgage specialist about interest rates and a real estate broker about the current state of the housing market.
