The Bank of Canada has just raised its leading rate for the first time in several years. This news may prompt questions from your clients about their finances and investments.
Based on current data and forecasts, one or two additional rate increases could be expected. However, experts do not anticipate a series of rate hikes comparable to that of 2022.
Answers to fuel your client conversations
The article “Rising interest rates and your finances in 5 questions“, available in the Advice Zone, could help you better structure your conversations with your clients and answer any questions they may have:
- Why are interest rates rising?
- How does this affect loans?
- What savings opportunities might this create?
- Should we be concerned about market reactions?
- How does this affect bonds?
Prepare for your next savings conversation
Periods of market volatility often provide opportunities for meaningful conversations with your clients. As the RRSP, TFSA and FHSA campaign approaches, take this opportunity to put the current situation into perspective, confirm that their financial strategy still meets their needs and provide advice tailored to their circumstances.
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Above all, remind them that it is in their best interest to hold onto their investments to stay on track toward achieving their long-term goals and to seize opportunities the markets may offer despite turbulent conditions. |
