Will Record Low Inflation Keep Canadian Interest Rates Down?

The Canadian inflation rate, tracked through the Consumer price index, minus a few volatile commodities, is the lowest its been in history according to the number released for February, 2011.  Here’s the Financial Post story with more background details

http://www.financialpost.com/Canada+core+inflation+slows+record/4463311/story.html

With the Bank of Canada also commenting that there is sufficient “slack” in the economy to ward off the concerns of near term inflation, every one appears confident that the Canadian inflation target can remain within its 2% target.

So how does this impact interest rates now and into the near future at the least?

The major banks are still talking about rate increases during 2011.

Considering what’s going on in the rest of the world, its hard to imagine the cost of money increasing very much if at all in the near term.

So while it may be a good time to expand your business or refinance the balance sheet, the challenge is not likely in the interest rates going up, but the banks parting with their money.  Business financing approvals for the lower cost forms of money are still harder to come by in 2011 than compared to two or three years ago.

The process for securing commercial capital is indeed more complex and not likely to get any easier any time soon.

If you’d like to find out more about how to locate and secure the business capital you’re looking for, visit the businessfinancespecialist.com

About the Author Brent Finlay