Happy Friday from BMWM!

 

The Current Account (click here to read)’s big news this week is Germany and the U.S. sending battle tanks to Ukraine. It also covers the Bank of Canada pausing on interest rate hikes for the time being, a resurgence in the population of the highly endangered arctic fox, and M&M abandoning its long-time “spokescandies”.

 

Our biweekly commentary on the markets included this week will discuss the slowing inflation rate, and the subsequent pause in interest rate hikes. Now we wait to see the impacts of the most recent interest rate increase to identify whether this will slow inflation enough. Once we have had some time to analyze the impact of this last rate hike, we will have a better indication of whether further hikes will be needed, or if the Bank of Canada can ease rates in the future. The current yield curve does still indicate higher rates over the short term and reduced rates over a 3-5 year period.

 

Taylor’s word of the week is quixotic, meaning “exceedingly idealistic, unrealistic, and impractical”. For example, a stretch limo is a bit quixotic for a first date, don’t you think? 

Have a lovely weekend,

 

Brenda, Taylor, and Matty