– Charles Swindoll
By adopting a Negative Interest Rate Policy, the Bank of Canada is at least signaling its own preparedness for an economic crisis or a period of sustained deflation. Given the sluggish Annual Growth Rates of advanced economies in 2015 (2.1 % versus 4.2% for Emerging Economies according to the IMF) and the continued decline in the Canadian Resource, Energy and Oil Sectors (WTI at $37.51 USD today), it is probably just prudent planning for a worst case scenario.
However, if preparedness is good enough for The Bank of Canada, isn't good enough for you and your business?
If so, here is what I recommended in a September, 2014 article in the Globe and Mail - Report on Business. I believe the course of action outline below, combined with building a strong cash position, focusing on sales expansion and leveraging the relationships with your current customers, will separate the winners from the losers in the turbulent period ahead.
When business cycles change, it may not be the end of the world as we know it, but it certainly feels like it