The Bank of Canada recently increase it’s overnight rate to 1.75% the highest it has been since December of 2008. The big 5 banks responded and raised their prime lending rates from 3.70% to 3.95%.
What does this mean? We will leave that to the experts to comment on.
We want however to draw your attention as business owners to the rising prime rates. Ask yourself, is it time to lock in some of your floating rate debt into a fixed rate? As a business owner you don’t want to speculate what interest rates will do going forward so, from a cash flow point of view you may want to consider locking in a fixed rate within your available cash flow now. It is up to you! We can help! Give us a call or reach out as shown below.
Business Finance Consultant
Labrecque Business Consulting
P.O. Box 20067
Qualicum Beach, B.C.