Court Order Interest Rates Increased

Effective July 1, 2018, the Court Order Interest Rates have increased. The Court Order Interest Act, R.S.B.C. 1996, c. 79, provides for the payment of pre-judgment and post judgment interest at a prescribed rate. These rates can be changed up to twice a year, on January 1^st and July 1^st.

Effective July 1, 2018:

1. the Banker's Prime Rate is 3.45% (increased from 3.20%);
2. Interest earned on funds held under Rule 23-4(6) (funds held in Court) is 1.45% (increased from 1.20%);
3. pre-judgement interest will accrue at a rate of 1.45% (up from 1.20%); and
4. the interest rate post-judgment is 3.45% (increased from 3.2%).

The first change in rates since January 1, 2016 was on January 1, 2018. The July 1, 2018 changes represent the second consecutive increase and a substantial change from the rates in effect this time last year. The higher rates could have a significant impact on large damage awards.

A link to the historic interest rates can be found here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.