The 5% interest rate increase by the Bank of Canada will impact the average Canadian who are in debt by about $500 per year. This will likely discourage Canadians from borrowing or purchasing on credit. This will seriously cool the economy, decrease sales across the buying spectrum and lead to greater unemployment.
Most likely, this will impact little on the profit line of Loblaw’s, Sobey’s and Metro where prices do not fluctuate but seem to increase endlessly. A difficult situation for the average Canadian.
Canadians caught between rock and a hard place without government assistance
Buying shares in food retailers seems to be an unchallenged path to monetary gain! In other words, our government is likely going to do nothing about this situation….question may be, what can it do?
