Posted 11/9/2023, 6:46:00 PM
Bank of Canada Warns Higher Interest Rates Are Here to Stay, Households Must Prepare for Costlier Debt
- Bank of Canada says era of super-low interest rates is likely over, households and businesses must prepare for higher borrowing costs
- During pandemic, policy rate was just 0.25% most of time, now it's at 22-year high of 5%
- Some households already struggling with debt as delinquencies have returned to or surpassed pre-pandemic levels
- 60% of mortgage holders facing significantly higher payments when renewing in next few years
- Some Bank of Canada policymakers saw need for more rate hikes at last meeting, though easing expected by mid-2023