The Globe and Mail reports in its Tuesday, Jan. 22, edition that the number of Canadians who are $200 or less away from financial insolvency at month-end has jumped to 46 per cent, up from 40 per cent in the previous quarter, says insolvency firm MNP.
A Canadian Press dispatch to The Globe reports that MNP's survey also found that 31 per cent of Canadians say they do not make enough to cover their bills and debt payments, up 7 per cent from the September poll. The results also indicated that 51 per cent of respondents say they are feeling the pinch of interest rate increases, up from 45 per cent a quarter ago. Forty-five per cent say they will need to go further into debt to pay their living and family expenses.
The Bank of Canada introduced five rate hikes since mid-2017, in response to the stronger economy. BOC governor Stephen Poloz kept his benchmark interest rate unchanged earlier this month at 1.75 per cent, but has signalled that more rate increases will still be necessary "over time."
MNP's latest survey also showed that half of Canadians surveyed said they believe they could be in financial trouble if rates continue to rise, up 5 per cent from the previous poll.
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