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Higher Interest Rates Are Hurting Canadians’ Spending: Poll

Almost two-thirds of Canadians (64%) say higher interest rates are hampering their personal spending, according to a new poll by the Nanos Research Group.

Another 28% of people surveyed said higher rates had no impact on their spending habits, while 6% said the impact of higher interest rates was positive for their finances.

The survey results are at odds with recent economic data that showed Canadian consumer spending has remained resilient.

The most recent data from Statistics Canada showed that household consumption across the country rose an annualized 5.7% in this year’s first quarter, the fastest pace of increase since the beginning of 2022.

The poll also showed that higher interest rates are having a bigger impact on younger people, with 76% of Canadians aged 18 to 34 more likely to say that inflation has had a negative impact on their spending patterns.

The survey took place just before the Bank of Canada raised its benchmark overnight interest rate to 4.75% last week.

The poll of 1,096 Canadians was conducted online and by telephone between May 31 and June 3, and has a margin of error of three percentage points