Canadians to feel the pinch if rates rise: survey

One in three Canadians say they’re already feeling the effects of increasing interest rates, finds a survey for insolvency firm MNP Ltd.

The survey also found that 40% of those queried say that if interest rates go up much more, they’re afraid they’ll be in financial trouble.

Meanwhile, 70% say that, with interest rates headed higher, they’ll be more careful about how they spend their money.

Read: Expect smaller budget deficits in fall update: RBC

The BoC has raised its key interest rate target twice this year, moves that have prompted the big banks to raise their prime lending rates.

The central bank is expected to make its next rate announcement Wednesday.

Economists expect no change by the BoC to its overnight rate target. In fact, CIBC Capital Markets chief economist Avery Shenfeld said in a note on Friday that the central bank wouldn’t raise the interest rate for a third time this year.

Read: BoC to hold interest rate, analysts say

Derek Holt, head of capital markets economics at Scotiabank Global Economics, also expects the bank will hold its rate steady on Wednesday.

About the survey: 2,005 adult Canadians were surveyed online by Ipsos for MNP between September 18 and September 21.

Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.