Market Watch

On June 5, the Bank of Canada lowered its policy interest rate from 5% to 4.75%,¹ the first decrease since rates peaked on July 12, 2023.

Based on the Consumer Price Index, inflation in Canada rose 2.9% (year-over-year) in May, up from April's gain of 2.7%.² Higher prices for services like rent, cellular services, tours and air transportation helped nudge May's inflation rate slightly above consensus expectations.

Helping to contain inflation somewhat was Canada’s employment market, as the 27,000 jobs created in May (down from 90,000 in April) pushed the unemployment rate up to 6.2%, an increase of 0.1 percentage points from April, and 0.9 percentage points higher year-over-year.³

In the Spotlight – All about Estate Planning

If you’ve been thinking about estate planning and leaving an inheritance to your family and perhaps other heirs, kudos for being proactive. After all, for most people their legacy options when gifting money to loved ones starts with an estate plan. As part of the planning process, consider creating a will that stipulates whom you’ve designated to receive which assets. And when we say “assets,” it could mean cash, investments, real estate, vehicles, heirlooms/keepsakes, a business, and more.

Quick Fact

If you become incapacitated and can’t adequately manage your affairs, delegating power of attorney for your finances or personal care is valuable – yet only about 40% of Canadians do so

Did you know?

Having a Last Will and Testament is important because it’s a legal document that states how you want your estate (e.g., your property, investments and other possessions) settled after you die. A will is an essential document for all adults, regardless of circumstances. Just as you go to the doctor for regular check-ups, wills are basically a check-up on your estate. Not having a will could increase the time and cost of distributing your assets, plus the court will decide who receives which assets.

¹https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/

²https://www150.statcan.gc.ca/n1/daily-quotidien/240521/dq240521a-eng.ht

³https://www150.statcan.gc.ca/n1/daily-quotidien/240607/dq240607a-eng.htm?indid=3587-2&indgeo=0