Kicking off September 2023

This month starts with a pause by the US Federal Reserve in their tightening monetary policy.  The past month economists were predicting the Fed would add a further quarter point increase, but with US consumer confidence and new jobs reports showing significant deterioration, they chose not to increase rates. 

The Bank of Canada will have their next rate decision September 6th and they are widely expected to stay on the sidelines and leave the rate at its current level.  Economists have been expecting a further quarter to a half point rise by year end.  Now many are reducing their projections to either a quarter point rise or no further increase. 

The current posture reminds me of river rafting on a quiet calm waterway not knowing if the next corner brings white water rapids or continued comfort.  We will see this fall if the central banks have navigated a soft landing or if the rapids of recession appear.

Why do we spend so much time talking about interest rates? 

In the current economic landscape, they are dominant factor in the direction of our economy.  And the economic composition determines our product and risk choices. 

Remember to call us for the best GIC rates as we have the best rates and offer all bank and credit union products available. We also have a limited supply of McKay Grove shares left for investment and if you haven’t looked into this great short term opportunity you should. We are bringing on three new investment opportunities this month and will introduce them to you in the month.  We are at the Toronto Money Show the weekend of September 9th and will post highlights in our blog on our web site

Sincerely,
Norm Holmes, Vice President.