Canadians’ confidence in their personal financial situation and debt repayment abilities has fallen to a record-low, according to a new report.
The latest MNP “Consumer Debt Index” plunged by seven points over the past quarter to 88 points, the lowest level since its inception in June 2017.
The survey found almost half of Canadians (45%) aren’t confident they’ll be able to pay for basic living expenses this year. When it comes to debt levels, four-in-10 respondents (43%) are worried about how much they currently owe.
Increasing concerns around Canadians’ personal finances come as the Bank of Canada gears up for its first interest rate decision of the year. Economists at JPMorgan Chase (JPM) expect the central bank to raise its key rate at the Bank of Canada meeting on January 26.
If the Bank of Canada raises interest rates, it could strain Canadians’ financial situation to the edge given the current high levels of interest baring debt.
