The fifth hike in the key rate since the beginning of the year puts new pressure on SMEs, forcing them to raise their prices in order to offset increases in operating costs, according to the Federation Canadian Independent Business (CFIB).
About 70% of SMEs believe that this increase will have a negative impact on their business, with most already feeling the effects of inflation.< /p>
“It is getting more and more expensive to do business in Canada. Rising operating costs, rising interest rates and labor shortages are putting SMEs in a difficult situation,” Simon Gaudreault, chief economist and vice-president of research at CFIB.
Nearly a third of SMEs are expected to raise prices by 6% or more over the next 12 months, according to the Federation's August Business Barometer.
“Governments must quickly put in place measures to reduce the operating costs of SMEs, argued Jasmin Guénette, vice-president of national affairs at the CFIB.
“For example, the federal government should freeze currently planned tax increases and accelerate reductions in credit card transaction processing fees, as promised,” he added.
Recall that the Bank of Canada raised its key rate by 75 percentage points on Wednesday, which now stands at 3.25%.
Katrine Johns has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Gal Post, Katrine Johns worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my firstname.lastname@example.org 1-800-268-7128