Personal Finance Canada

As a counterweight to the widening of wealth inequality, rising rates lower the value of essentially all risk assets. So the ones who truly benefit the most are the ones who only acquired their assets after the hiking cycle.

This is partly why there are examples of periods with high inflation that also saw a narrowing of wage inequality. The post-war period in Europe was such an example. In that time the relative bargaining power of labour also helped because the high inflation was met with even higher pay raises. So working people were acquiring new wealth through their wages during a period of sustained low asset prices.

For 2023 wage growth in Canada actually exceeded inflation. I would bet that we'll see that trend continue this year as well as inflation comes down.