As we discussed here last week, the red flags were ready, if not actually raised, by businesses when the Bank of Canada upped its key overnight rate by a quarter point to 0.75 per cent.
It was the first interest rate increase in seven years, but we were warned that cheap money wouldn’t be around forever and this was bound to happen.
The people who will immediately feel the sting are those with variable rates on their mortages, lines of credit, credit cards or car loans, but those with fixed rates will see the difference when they have to renew.
A quarter-point increase may not seem like much, but another hike is expected in October, with more to come next year when some predict the key rate could be at 1.5 per cent.
With Canadians being warned about record household debt before Wednesday’s announcement, it could quickly become difficult to manage that debt for consumers facing belt-tightening measures.
What will that mean to the golf industry, with its dependence on discretionary income?
That’s the question in this week’s GNN Poll.
You can answer below or on the GNN home page and if you’d like to add your thoughts on this subject, please feel free in the Comments section below.
How will rising interest rates affect spending on green fees, memberships, pro shop goods, food and beverage and other golf-related purchases?
- Slightly (54%)
- Not at all (27%)
- In a big way (20%)