Yield Curve
The yield curve is a graph showing interest rates on bonds of the same credit quality across different maturities, from short term to long term. It is a finance and economics term rather than a legal one. An inverted curve, where short term rates exceed long term rates, is often seen as a signal of economic slowdown.
How BC law treats it
The yield curve has no legal meaning. Interest on business loans is governed by the contract, the federal Interest Act, RSC 1985, c I-15 and the criminal interest rate in s. 347 of the Criminal Code; the Business Practices and Consumer Protection Act applies to consumer credit, not business borrowing.
What it means for your business
Interest rate trends affect the cost of variable rate borrowing, so review the rate terms and any caps or hedges in your loan agreements.
Risks and common mistakes
A variable rate loan without a cap or hedge can become much more expensive if short term rates rise sharply.
Browse the full Fulcrum Law Dictionary for related terms.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
