The recent increase in interest rates by the Bank of Canada may be a show of support for the economy of Canada, and Estevan. 

"An interest rate hike does not necessarily mean it's a bad thing,"explained Estevan's Economic Development Coordinator, 'Dwight 'Fitz' Bramble. "I think in Canada's case the impetus of that has to do with the good performance of the Canadian economy."

"At the same time, investment spending can also be affected because a business who might want to go to the bank to get a loan, now they have to pay a higher interest rate, that may be a bit of a deterrent."

"All in all, it's a reflection of the good performance of the Canadian economy."

And that is reflected in Estevan's economy as well.

"Every city, every community is going to be affected. Smaller communities such as Estevan, the impact can be much more far reaching. I think the performance of Estevan's economy is in keeping with the national trend. The national growth rate over the last year was between 4%-6% and Estevan is just around that also."

He added that with a higher interest rate, it may spur some on to save more because of the higher rate on their savings. 

"An increase in interest rates could affect consumer spending because people with loans and other securities could be affected. If you have a fixed interest rate loan, you'll be quite alright but if you have a loan with a variable interest rate and the interest rate is increased by the Bank of Canada, you could be affected. Residents will have to be a little bit more vigilant."

"But all in all, I think consumers, especially in smaller communities such as Estevan, residents, it should really be a motivation to take a closer look at their finances and their financial activities." 

 

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