According to a new survey by MNP, Twenty-eight per cent of respondents said another rate increase will throw them toward bankruptcy, while 42 per cent say if rates rise much more they’d fear for their financial well-being.
“When you look at the staggering number of people who are teetering on the edge, it’s clear that we are going to start seeing a rise in delinquencies as rates rise,” said MNP President Grant Bazian in a release.
The Bank of Canada has raised interest rates three times since last summer, and investors overwhelmingly expect the bank will boost its target for the overnight rate to 1.5 per cent on Wednesday.
Why Does This Matter?
The bank is widely expected to increase the rate in two days. Meaning that a large portion of the population could potentially be at risk of bankruptcy if the rate increases are more than a manageable amount.