Growing Number Of Canadians Say They’re Feeling The Impact Of Higher Interest Rates

A growing number of Canadians say that they are feeling the affects of higher interest rates, according to a new poll.

The quarterly MNP consumer debt index survey found that 43% of Canadians say they’re feeling the effects of higher interest rates, up five percentage points from just three months ago.

The poll done for insolvency firm MNP also found that 51% of respondents fear rising interest rates could impact their ability to repay their debts, while 33% agreed that rising interest rates could possibly push them towards bankruptcy.

Forty-seven per cent of people surveyed said they do not believe they’ll be able to cover all their living and family expenses in the next 12 months without going into further debt. The poll comes ahead of the Bank of Canada’s interest rate announcement later this week.

The central bank has raised its key interest rate target three times since last summer, moves that have prompted the big banks to raise their prime lending rates. The latest MNP poll was done between March 12 and March 16 and included a sample of 2,001 Canadians that were interviewed online.

The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.