What is a Variable Rate or Floating Rate Loan?
A Variable-rate or Floating-rate loan is a loan in which the interest rate varies over the loan term. This is different from a fixed rate loan that has the same interest rate throughout the loan term. The base interest rate is the prime rate, which is based on the Central Bank’s overnight rate. And then… Read more »
Will the Bank of Canada Cut its Policy Interest Rate from 4.75% on July 24th, 2024?
Ever since Bank of Canada governor Tiff Macklem and his board decided to cut the Bank of Canada’s policy interest rate from 5% to 4.75% – the first rate cut since the 2020 pandemic – which was announced in Ottawa on June 5th, 2024, individuals, businesses, and the capital markets… Read more »
Solve Low Labour Productivity in Canada: Businesses Need Investments, Less Taxes, Less Homeownership Obsession
Economists at the Bank of Canada have been blaring the alarm about a problem in Canada’s economy that’s even more important than, but inextricably linked to, inflation. This problem is the consistently stagnant and even declining rate of productivity in Canada. It is close to the bottom of the ranking… Read more »
What is Inflation?
Increase of the average price of a specific basket of goods in an economy during a specific period of time.
What is a Sovereign Default?
The inability of a government to repay its debts to its creditors, like any defaulting individual or business.
What is a Sovereign Wealth Fund?
A state-owned investment fund that invests in assets such as real estate, stocks, bonds, private businesses, and alternative investments.
What is a Central Bank?
A financial institution that is responsible for maintaining the price stability and financial stability of a country.