Rate hike means Manitoba will spend $3.2 M more to service debt

WINNIPEG – The rate hike by the Bank of Canada will mean Manitoba has to spend another $3.2 million dollars this year to service its debt.

Manitoba already spends more than $938,000,000 per year in interest payments.  The hike, which will see the Bank of Canada rate climb 25 basis points will push those payments to $941,000,000 this year.

“Our government takes this very seriously,” Manitoba Finance Minister Cameron Friesen said.

Friesen also noted Wednesday’s hike, taking the rate from .5 per cent to .75 percent could be the first of many.

“It will have real implications for Manitobans,” Friesen said. “Every dollar spent to service the debt is a dollar that cannot be spent to strengthen front line services.”