Interest rate cuts continue to encourage business growth and investment

The following statement is attributable to Deborah Yedlin, President and CEO at the Calgary Chamber of Commerce:

“The Bank of Canada's decision to cut interest rates by 50 basis points this morning is a welcome move for businesses in Calgary and across the country. Interest rates haven’t been this low since November 2022.

“Lower borrowing costs provide businesses with more room to invest in growth and innovation, which is crucial given that productivity challenges continue to confront Canadians. With easier access to capital, companies can invest in new technologies, employee training and operational efficiencies – key factors that drive productivity gains and enhance competitiveness in a rapidly evolving global economy.

“We know the top obstacle to growth for businesses is costs. In fact, rising costs challenge nearly 70% of Calgary businesses across sizes and sectors, with small and medium-sized businesses being challenged most acutely. This reduction will continue to help ease the financial burden, giving them the opportunity to expand, hire more staff and improve cash flow.

“We’ve seen encouraging signs that inflation is trending downward, which indicates that these measures are helping to stabilize the economy. With inflationary pressures easing, businesses can better manage operating costs and pass savings on to consumers, helping ease the affordability crisis across the economy.

“Lower interest rates also benefit consumers, who have been feeling the pinch of higher debt servicing costs and cutting back on their spending. A lower interest rate environment should result in an increase consumer spending and support the businesses in Calgary and across the country.”

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About the Calgary Chamber of Commerce 

The Calgary Chamber exists to help businesses reach their potential. 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 founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.