Five reasons why a higher interest rate is a good thing - MoneySense

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.

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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:

  1. The 0.25% hike will make people think twice before taking on debt beyond their means
  2. It will help cool the housing bubble in Vancouver and Toronto
  3. Cash in money market mutual funds will earn more, encouraging people to save
  4. Bonds will perform better than expected
  5. Inflation is not a major threat

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