The last time your Analogue Broker's hair was black.
I hope you have all had a relaxing, enjoyable summer so far. Your Analogue Broker has yet to take any time off ( that comes later ).
For now, I’ve been doing what most brokers have been doing for most of this year and watching the inflation numbers as well as the interest rates.
I’ve actually been following this for most of my working life, starting at from my very first office job at Fidelity Trust on Bay Street in Toronto. Back then inflation was an issue but things were wildly different.
The unemployment rate at the time was over 12.8%, inflation was 12.5% and you could expect to see your fixed rate renewal coming through the mail with a rate of over 20%.
I don’t mention this to pooh pooh what’s going on at the moment, but I do want to counteract some of the ‘sky is falling’ media reports that have come out.
Back to the present and we’ve gotten some better news – the inflation rate actually dropped this month by .5% - not a great advance but the Bank of Canada’s strategy seems to be working at least.
The news shouldn't deter the Bank from raising rates again in September ( they will ) but it may mean they’ll moderate the increase slightly. The last thing they are looking to do is to shut down the economy entirely and trigger a full blown recession. It’s obviously a bit of a tightrope.
But then, we’ve all been on some sort of tightrope over one thing or another over the last couple of years, haven’t we?
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