A new poll has found that one in three Canadians (33%) say they are already feeling the effects of higher interest rates.
The survey carried out for insolvency firm MNP Ltd. also found that four in 10 people (40%) who were surveyed say that if interest rates go up further, they fear they will be in financial trouble. And, seven in 10 Canadians polled say that with interest rates headed higher, they will be more careful about how they spend their money.
The poll surveyed 2,005 adult Canadians and was conducted by Ipsos for MNP. It comes after the Bank of Canada raised its key interest rate twice – in July and again in September – which lifted the rate to 1%. The big banks have followed suit and raised their prime lending rates too.
Canada’s central bank held off raising its benchmark interest rate for a third time last week, citing concerns about high levels of consumer debt and expressing a desire to gauge how Canadians will adjust to a higher interest rate environment. This past week, Bank of Canada Governor Stephen Poloz expressed public concerns about consumer debt levels in Canada and the impact that rising interest rates could have on people’s ability to service their debt loads.
The Bank of Canada’s next interest rate decision will take place on December 6th.
