Always fun to be on the CBC News’ Weekend Business Panel. This week I was asked to talk about the price fixing fine on Canada Bread, Equifax’s reporting small businesses have significantly increased their credit card debt (and reduced loans), and the most livable cities ranking from The Economist.
With respect to the second point, in general it is not a good sign. It is not clear why businesses are using more revolving debt (no good reason though), but the reduction in traditional lending does reflect lower investment in the future. I think the pinch of inflation plus high cost of debt is being felt more widely already. The FT called it the “pain phase” earlier this week: the period where rates are high, but inflation still hasn’t come down.
See my thoughts below!