Rising interest rates are starting to weigh down Canadians’ confidence in their finances, according to the latest results of the MNP Consumer Debt Index.
As a result of the interest rate hikes seen so far, nearly six in 10 Canadians (57%) say they are concerned about the impact of rising interest rates on their financial situation.
The Bank of Canada has so far lifted its benchmark rate by 75 basis points, which has raised prime rate, affecting variable-rate mortgages and lines of credit. Fixed mortgage rates have also risen roughly one percentage point (or 100 basis points) over the past couple of months following a surge in bond yields to an 11-year high.
The MNP survey found more than half of Canadians (52%) say they’re already feeling the effects of interest rate increases, with two in 10 (22%) saying they’re not financially prepared…
