So in case any of you were inclined to believe the drivel from the Government or the Central Banks, of late there are more and more experts now predicting that U.S. interest rates may go up more, before they come down. Reasons cited, economy still growing, inflation still well above the 2% target, more jobs than workers etc.
I find it interesting that in Canada, despite record immigration, the GDP is shrinking, productivity is dropping, house and rent prices continue to sore and almost every service, including health services, food banks and government services, despite the number of federal of employees having grown 50% in the last 4 years,, are massively over subscribed.
Anyone expecting relief from higher interest rates, surging food, fuel and everyday costs inflation needs to take another look at their plans for the next 12 to 24 months, because it is likely to get worse, or at minimum not get any better, any time soon.
I don't say this to be negative or to depress folks but it goes back to the theme I have advocated for a long time; Reduce debt, invest in things that grow faster than inflation and produce an income, and make sure you have a VERY firm grip on your monthly and annual personal budget.
All you have to look at is what has happened to the cost of gas in the last few months, up 60%. Groceries, taxes, if you live in Edmonton property taxes alone are going up 25% in the next 3 years, mortgage payments when you go from 1.5% at renewal to 5 or 6%, apartment rent is jumping at every annual renewal etc. If you are currently living from paycheck to paycheck, you need to find a way to bring in more income, or reduce expenses, or both, because your current costs are 10% less than they will be 12 months from now.
Best of luck to all.
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