The Surrey Board of Trade has been closely watching the continued interest rate hikes. Today, the Bank of Canada again increased the prime lending interest rate from 1.25 per cent to 1.5 per cent.
“Surrey is comprised primarily of small and medium sized businesses. The Surrey Board of Trade is concerned about the impact to business investments and consumer spending on these businesses through continued interest rate increases,” said Anita Huberman, CEO Surrey Board of Trade.
“We remain concerned about slowing growth as we look ahead in 2018 and into 2019, especially in light of trade protectionist strategies, NAFTA uncertainty and continued regulatory burden on companies.”
When consumers pay less in interest, this gives them more money to spend, which can create a ripple effect of increased spending throughout the economy. Businesses and farmers also benefit from lower interest rates, as it encourages them to make large equipment purchases due to the low cost of borrowing. One-third of Surrey’s land base is agricultural.
The Bank of Canada however speculates for economic growth from 2018-2020 by 2 per cent per year.
“The Surrey Board of Trade will continue to provide support for new businesses, and attract businesses into Surrey,” Huberman assured, “and that business development, fostering business connections, and ensuring the government at all levels are accountable to businesses.”