Interest rate cut another step in the right direction to ease affordability pressures and improve access to capital for business

This statement is attributable to Deborah Yedlin, President & CEO at the Calgary Chamber of Commerce:

“The Calgary Chamber of Commerce is encouraged by the Bank of Canada’s decision today to cut interest for the second consecutive time, by another 25 basis points to 4.5 per cent. Households and businesses across Canada have been struggling with rising costs for nearly half a decade and this decision is a step in the right direction to provide some relief.

“Overall, businesses are feeling good about the economy and our long-term future. Nearly 80 per cent of Calgary businesses report being optimistic about the future. This is supported by their concerns surrounding inflationary pressures abating from 2022, when 25 per cent of business reported inflation was the top issue compared with nine per cent today.

“While this is good news, the reality is economic growth has been modest in the years following the pandemic, with higher interest rates putting pressure on businesses and households. The lowering of rates will decrease debt servicing burdens and free up capital for investment and consumer spending.

“Access to capital remains an essential ingredient for increasing economic growth and productivity across all sectors. However, nearly 25 per cent of Calgary businesses struggle to access the capital they need – to hire employees, invest in new technology or expand their businesses. This challenge is particularly acute for small businesses, as well as early-stage and minority-owned businesses.

“As small businesses account for 97.8 per cent of all businesses in Canada, creating 64 per cent of private sector jobs and nearly half of our national GDP, it is essential that we support their growth.

“While a lower interest rate environment is encouraging for businesses across the country, we’re calling on all levels of government to support this vital growth engine of Canada’s economy by committing to a stable policy environment and boosting funding mechanisms for under-served and under-represented businesses."

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About the Calgary Chamber of Commerce

The Calgary Chamber exists to help businesses thrive. As the convenor and catalyst for a vibrant, inclusive, and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification, and opportunity. As an independent, non-profit, non-partisan organization, we build on our 131-year history to serve and advocate for businesses of all sizes, in all sectors, and across the city.