Canadians have grown more pessimistic about their personal finances after the Bank of Canada raised interest rates earlier in July, lifting borrowing costs to their highest level in more than 20 years.
A new survey from the Angus Reid Institute found that 59% of people in Canada expect higher interest rates to have a negative impact on their personal finances, and 33% expect significant challenges due to the latest rate hike.
The poll was taken a week after Canada’s central bank raised its trendsetting overnight interest rate to 5%, its highest level in 22 years.
Canadians paying home mortgages said they are having difficulties due to elevated interest rates, with 89% of poll respondents saying they expect their payments to become more difficult with the latest rate increase.
Renters across Canada also reported difficulties due to higher interest rates, with 45% saying they’re having a difficult time paying their monthly rent.
Among poll respondents, 11% said they support the Bank of Canada increasing rates further to cool inflation, while 32% said they think the central bank should hold rates steady at 5% and wait for the economic impacts to become clearer.
Among respondents, 36% said they thought the interest rate increases were the wrong decision and that the Bank of Canada should begin lowering rates.
Angus Reid conducted an online poll from July 13 to 17, 2023 among 1,600 Canadian adults. The survey has a margin of error of +/- two percentage points, 19 times out of 20.
