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moneysense.ca, 9/06/10
Five reasons why a higher interest rate is a good thing
Potential home-buyers may view the 0.25% hike in interest rates as negative, but there are positive aspects as well.
Current issue:
Plenty of potential home-buyers have been complaining about rising interest rates, but the Financial Post provides a “glass half-full” view, offering five key reasons why rising interest rates may be good news. Here’s what he says:
- The 0.25% hike will make people think twice before taking on debt beyond their means
- It will help cool the housing bubble in Vancouver and Toronto
- Cash in money market mutual funds will earn more, encouraging people to save
- Bonds will perform better than expected
- Inflation is not a major threat
moneysense.ca, 9/06/10
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