The Bank of Canada has recently raised interest rates from 1% to 1.25% and it may affect your bottom-line. 

"I think, like everything in life, there's winners and losers," shared Financial Planner with Spectra Financial, Ron Areshenkoff (CPCA). "If you have a mortgage or if you have a business and you have a line of credit or you have to borrow money to buy materials and supplies, you'll have to pay more for that."

"If you've worked a lifetime and you have savings that you're trying to retire on, you're going to be rewarded and make more money off your savings."

"As far as business is concerned, it has the potential to incur more costs and be a little detrimental to businesses and to people with debts. But savers, people with money will benefit on a higher return on the money they have saved."

He noted that interest rates have been much higher in years past. 

"We're in the midst of historically low interest rates and young people today don't have any understanding of what parents and grandparents with 12% and 18% interest rates."

"We've gone through a period where low interest rates have amassed a lot of irresponsibility with personal finances. The cost of debt is going to be very punishing going forward with rising rates."

He added that the trend is to go higher.

"The Bank of Canada and the Feds, they want to keep increasing rates to the degree that the economy and homeowners with debt can bear it. It does a couple things, it creates inflation and it rewards savers who worked a lifetime as our economy is supposed to function in that manner. And also, it gives them a bit of ammunition if we do run into a recession or the economy hits a slow period, they've got some room to lower interest rates to help spur the economy. Right now, there's not a lot of room to lower interest rates if things really toughen up."

READ MORE: Jackie Wall: Bank Of Canada Interest Hike Not A Surprise

More Local News

Autism Funding Comes Up Short

With the recently released budget, the provincial government bumped the number of funding families with children with autism under the age of six receive. The funding is being increased from $4,000 a…

Envision Counseling Get's A Boost With Budget

In the 2019-20 Provincial Budget, it will include a strong focus on mental health. Funding for targeted mental health and addictions initiatives ins increasing by nearly $30 million in this budget to…

C.U.P.E Not Happy With The Provincial Budget

With the provincial budget released on Wednesday, there were cheers and boos from all corners of the province, one group that has almost nothing good to say about the budget is the Canadian Union of…

EPS Deal With Multiple Calls Last Night

The Estevan Police Service had another steady night last night with issues ranging from assault to theft there was no shortage of work for the boys in blue. Sgt. Tyler McMillan gave us some of the…

The EPS Make One Arrest for Assault Last Night

The Estevan Police Service was busy making the rounds last night, The intense hockey game kept most peoples attention for the night however there were a few incidents of note. Sgt.Tyler McMillan.…

Saskatchewan's Population On The Rise

The population in Saskatchewan is on the rise and has been since at least 2007. The population grew by 11,459 people in 2018 to 1,168,423 according to new figures released by Statistics Canada. The…

100 Kids Who Care Growing In Popularity

100 Kids Who Care are stronger together and the children are making a big impact right here in our community. Brooke Spagrud with how the last meeting went, "We had 39 to 40 kids, but one thing we…

Southeast College Holding Speed Networking Event For Students And Business Leaders

The Southeast College is trying something new and holding a speed networking event here in the energy city. It's being billed as an opportunity to meet with local business leaders and work on their…

Rafferty Rumble Gearing Up For Exciting Summer

The Rafferty Rumble is gearing up for a summer of excitement and entertainment. Josh LeBlanc Head Organizer of the Rafferty Rumble, "The Rafferty Rumble will take place from July 26th to the 28th,…

Sidhu Sentenced To Eight Years In Prison

Families and friends of the Broncos, most adorned in Broncos jerseys bearing their family names, gathered once again in the makeshift courtroom at the Kerry Vickar Centre in Melfort to learn the fate…

DiscoverEstevan.com is Estevan's only source for community news and information such as weather and classifieds.

Search the Biz Guide

Login