The governor—the Bank of Canada governor—has given us a reprieve. Survival isn’t assured.

The 25 basis-point reduction this week to drive the central rate to its lowest in three years will be helpful in renewing a mortgage or a loan, but the financial burden for many British Columbians remains stubborn. Moreover, the pressure isn’t applied and isn’t lifting evenly. There are several matters to consider:

The Bank Pivot. Our central bank has now lowered rates five times in just over a year, pulling inflation back into its one-to-three per cent target range. Mortgage renewals will get easier, lines of credit less suffocating, and small firms will find some capital a little cheaper. Yet the timing of the cuts reveals the backdrop: a cooling labour market and weaker growth. Relief is arriving into softness, not strength. For households, that means the benefit shows up slowly—in monthly payments, not grocery bills.

The Debt Divide. Equifax’s second-quarter 2025 data adds another layer. Delinquencies have stabilized compared with the first quarter, but 118,000 more Canadians missed payments than a year ago. Mortgage holders, often portrayed as stretched, are in better shape than many renters or non-mortgage households.

Nearly 286,000 businesses missed payments, 5.6 per cent higher than a year ago. There were particular problems in the hospitality and accommodation sectors. And businesses are doing much better at paying down their suppliers than they are paying down their........

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