A new report says Ottawa's decision to lower the maximum allowable interest rate could lead to the loss of thousands of jobs.
In the 2023 federal budget, Finance Minister Chrystia Freeland announced plans to cap the criminal rate of interest — the maximum annualized interest rate for credit allowed — to combat predatory lending practices, such as the imposition of unfair and abusive loan terms on borrowers.
Legislation implementing last year's budget lowered the maximum interest rate from 47 to 35 per cent. It became law last spring, but this section hasn't come into force yet. That date will be set by an order-in-council.