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How this week’s U.S. interest rate hike will affect Canadians?

September 27, 2018

U.S. Federal Reserve is expected to raise interest rates this week — and then keep raising them to keep inflation under control.

Why Canadianswill be affected by U.S interest rate hike? Well, to explain it simply, Canada and the U.S are integrated from many perspectives. A specialist in international economics at the University of New Brunswick stated that having a large and open economy, the central bank of United States does work as a manager of the world’s reserve currency. If there are any economic actions taken, they will have global impacts.

Canadians struggling with mortgage payments and other debt must take that into account because the actions of the world’s most powerful central bank don’t stop at the border. An expert stated that the cost of borrowing will rise for Canadians, as well as for emerging markets.

Source: CBC News https://www.cbc.ca/news/business/fed-rates-housing-1.4831333