Bank of Canada interest rate’s effect on personal finances [Video]

When it comes to interest rates, the worst is over as the Bank of Canada’s cuts will give people relief with their personal finances overall, an investment adviser says.

“It’s only going to get better over time,” said Paul Shelestowsky, an investment adviser from Niagara-on-the-Lake, Ont.

Lower interest rates tend to result in lower borrowing rates, he said, expecting relief for those with credit card debt, home equity line of credit, variable rate loans or any loans tied to the Bank of Canada’s key interest rate.

The central bank reduced its rate to 4.25 per cent on Wednesday, the first time it has slashed the rate for a third straight time since the 2009 global financial crisis.

“It almost feels like for the last couple of years, there’s been so much pressure on our dollars from the inflation that now … we can actually get some breathing room into our personal finances,” Shelestowsky said in a video interview with …