As the Bank of Canada prepares to announce its next decision on interest rates, a new survey shows that a growing number of Canadians – particularly young adults – are worried about paying their bills.
A new national survey conducted by Ipsos has found that 33% of Canadians are increasingly worried that higher interest rates will push them toward bankruptcy. Nearly half of survey respondents (45%) said they're feeling the effects of higher rates already.
Perhaps more troubling is the finding that nearly two-thirds of younger Canadians (62%) in the so called "millennial generation" say they are worried about paying their bills, and nearly half (46%) are concerned about being pushed into bankruptcy.
The Bank of Canada is widely expected to raise its benchmark interest rate on Wednesday (10 a.m. EDT) to 1.75% from 1.5%. The central bank has already raised its benchmark interest rate four times since the summer of 2017.
The latest data from Statistics Canada shows that in the second quarter of this year, Canadians, on average, owed $1.69 in debt for every dollar of disposable income. That debt-to-income ratio has been growing steadily in recent years, according to Statistics Canada.
