Financial Perspective – What are the takeaways from 2024?

Offered by SFL Wealth Management
January 16th, 2025

An economic review in highlights of the past year – and what to watch out for in 2025.

The past few years have been challenging ones for many people from a financial perspective, given the steep interest rates and unusually high inflation. Do you have the impression that the situation has improved recently? Here’s where we stand at the beginning of 2025.

Interest rates have started to drop 

At its meeting on June 7, 2024, the Bank of Canada began to ease its monetary policy, reducing its key interest rate for the first time since March 2022. After being held at a peak of 5.00% for the first few months of 2024, the key rate gradually dropped to 3.25% by year-end. As you know, the key interest rate affects most rates on consumer loans and mortgages, as well as fixed income securities such as guaranteed investment certificates.

It’s important to note that even though the key rate is now declining, it’s still higher than it has been for the past 15 years. In particular, this means that if you took out a mortgage before mid-2022 and the renewal is coming up this year, you might find yourself facing more costly terms…

Read the full article here.

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