Bank of Canada rate increase adds financial stress on Canadians: poll
VANCOUVER ISLAND, B.C. – An MNP poll shows Canadians continue to feel anxiety over finances in the wake of another Bank of Canada interest rate hike.
The BoC raised its interest rate by a quarter percent on Wednesday, to bring its benchmark rate to 1.75 per cent, the highest in a decade.
According to the central bank, the Canadian economy continues to operate close to its potential, and expects growth to average about two per cent over the second half of 2018.
However, the MNP poll shows that one in three people across the country worry rising interest rates could move them towards bankruptcy – up six percent since June.
The poll also found that more than half of Canadians (52 percent, up three percent) are concerned about whether they will be able to afford their debts as rates climb.
In B.C., the poll shows that:
- More than one in three B.C. residents now worry future increases could inch them closer to bankruptcy – eight percent higher than the previous measurement in June and the largest increase of any province.
- Close to half (45 percent) now say they are already feeling the effects of previous interest rate increases, while two in five (41 percent, up three percent) are now worried about financial trouble if rates go much higher.
- Nearly one in two (48 percent) British Columbians are questioning whether they will be able to service their debts if rates continue to climb.