The Surrey Board of Trade has been closely watching the continued interest rate hikes. Today, for the third time this year, the central bank has raised its benchmark interest rate by a quarter point to 1.75 per cent. The central bank notes there’s an eventual expectation of entirely removing monetary stimulus from the economy.
“Surrey is comprised primarily of small and medium sized businesses. The Surrey Board of Trade is concerned the interest rate increase will impact business investments and consumer spending,” 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, USMCA uncertainty and continued regulatory burden on companies.”
When consumers pay less interest, they have more money to spend. This creates a ripple effect throughout the economy. Businesses benefit from lower interest rates. With one-third of Surrey’s land base being agricultural, low interest rates encourages farmers to make large equipment purchases and other critical investments.
The Bank of Canada however speculates economic growth to continue. The Surrey Board of Trade is not certain about this economic confidence.
“The Surrey Board of Trade will continue to provide support for new businesses, and attract businesses into Surrey,” assured Huberman, “including business development and fostering business connections. We will ensure governments at all levels are accountable to businesses.”