Interest rate cut great news for businesses, homeowners: Calgary Chamber of Commerce [Video]

Wednesday’s announcement that the Bank of Canada has slashed its overnight lending rate by half a percentage point is “great news for the economy,” says the CEO of the Calgary Chamber of Commerce, Deborah Yedlin.

In a highly-anticipated move, the bank says it is cutting its prime rate to 3.75 per cent — that’s the lowest the rate has been since November 2022 and already several of Canada’s biggest chartered banks have announced they are cutting their rates too.

The move means businesses that have outstanding debt, at a variable interest rate, will pay less to finance that debt and homeowners who have variable rate mortgages will have lower monthly payments.

“It means they (homeowners) are going to have a little bit more disposable income and it means businesses will have more to invest in their businesses instead of having to service debt at a higher cost,” says Yedlin

She says its good news for the …