Rate increases and the associated bond yield rises are the main story in the investment market. The “emergency rates” environment of COVID is clearly over, and unprecedented level of inflation has forced the Bank of Canada to rise rates more aggressively than in the past. Inflation is not contained to a single area and is impacting different sectors from food prices, the housing market, and gasoline increases to name a few. This inflationary environment, combined with aggressive action from the US Federal Reserve, will likely force the Bank of Canada to continue raising rates.
