Interest rate hikes, recovering from a senior-level firing and student debt: The business and investing stories you need to know about this week

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Getting caught up on a week that got away? Here’s your weekly digest of the Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.

Interest rates move into restrictive territory

The Bank of Canada announced another oversized interest rate hike this week, raising its policy rate by three-quarters of a percentage point, its fifth hike since March. As Mark Rendell writes, this brought the benchmark overnight rate to 3.25 per cent – the highest since 2008 – a restrictive level that will see borrowing costs weighing on economic growth. On Thursday, Bank of Canada senior deputy governor Carolyn Rogers said the central bank isn’t done raising rates in order to bring inflation back to its 2-per-cent target, despite the economy already showing signs of cooling. Not to mention, home sales have plummeted since the spring, and as Rachelle Younglai reports, that slump will continue to deepen as rising borrowing costs push more potential buyers out of the market. So what should Canadians do in the face of continuously rising interest rates? Rob Carrick says to remember that pain is temporary, plus seven more tips.

How senior-level workers can move forward after being fired

After Lisa LaFlamme’s ousting from CTV, many Canadian workers – especially those in senior level positions – can’t help but feel unsettled by the relatable experience of being dismissed without cause. As Eileen Chadnick writes, “Sadly, the reality is that such situations extend well beyond careers in journalism.” Perhaps these people are let go in order to make room for fresh talent. Other times, it’s due to company mergers and duplicate roles, alignments in personality types or even a senior role becoming “too expensive.” Whatever the reason, for the senior-level worker losing their job, being blindsided is crushing. Here are five ways to recover and rebuild.

Will Canada’s history of inflation repeat itself?

Over the past year, officials placed the blame for soaring inflation on external factors like supply-chain issues and rising commodity prices. However, a new report from TD Economics shows that it’s actually Canadian-born inflation that could leave consumers with higher prices for longer. While in the past, inflation due to external goods tipped the economy into recession, inflation in the price of domestic services, like restaurants, lagged behind. Jason Kirby unpacks the alarming trend in this week’s Decoder.

Bank loans for Black entrepreneurs lack transparency

Black entrepreneur lending programs from Canada’s Big Six banks have been off to a slow start, with few approved loans this year, Chris Hannay reports. Propelled by the Black Lives Matter protests in 2020, banks announced new lending initiatives for Black entrepreneurs, who disproportionately face systemic barriers to accessing capital. Four banks have established programs so far and Toronto-Dominion Bank is set to launch one soon; however, Black entrepreneurs have criticized the lack of transparency around these loans and whether any funds have actually been handed out. The Globe reached out to various banks but for the most part, they provided very little details on the progress of the programs.

Financial pressures on students harder than ever

Postsecondary students learning to live on tight budgets is nothing new. After all, who else is keeping the instant noodle industry alive? But skyrocketing inflation is affecting students headed back to school on a whole other level, especially when it comes to rent, groceries and dining out. According to Salmaan Farooqui, some students are having to work up to three jobs – in addition to their education – in order to cover tuition and living expenses. Others are relying on food banks to supplement the rising cost of groceries. In almost every city in Canada, rent costs have risen dramatically as demand has returned to prepandemic levels. “They really are wild numbers,” said Paul Danison, content director for Rentals.ca. “Students are going to have to get creative and live further away from campus or team up with more roommates.”

Car in the shop? Think twice about a rental

Drivers who’ve damaged their cars have been spending more lately on alternative vehicles while they await repairs – sometimes for months, Erica Alini writes. In yet another quirk of the COVID-19 economic recovery, vehicle repair times are often stretching longer than usual due to supply chain issues as body shops struggle to source car parts. With service times extending past standard insurance coverage, consumers are finding themselves paying for rentals with no reimbursement. To top it off, rental vehicle charges have also recently skyrocketed . The average price per day is nearly double that of 2019 due to supply chain issues and travel demands.

Now that you’re all caught up, prepare for the week ahead with the Globe’s investing calendar.

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