Bank of Canada Interest Rate Increase: The Canadian Chamber Urges Caution
Following yesterday’s announcement of a 0.25% increase in the prime lending rate, we urge the Bank of Canada to be cautious about future increases.
While Canada’s economy is strong, we remain concerned about slowing growth as we look ahead in 2018 and into 2019. Further rate increases motivated in part by government policies that drive up the cost of living could negatively impact consumer spending as well as the housing market in Canada.
This would only exacerbate existing challenges facing Canadian businesses, including those that we have consistently identified, such as the need to address the increasing regulatory burden on companies, the uncertainty about the future of NAFTA and other important trade agreements and opportunities, and the persistent lag in business investment across the country.
Click here to read our statement.