The Bank of Canada’s recent interest rate cut has not changed Canadians’ negative perceptions about their personal finances, a new poll shows.
MNP’s consumer debt index, conducted quarterly by Ipsos, fell six points from the previous quarter to 85 points, which the insolvency firm said reflected increasingly negative views of respondents’ debt situation.
Two-thirds of respondents say they desperately need lower interest rates, while more than half fear rates will not fall quickly enough to provide them with the financial relief they need.
The central bank cut its benchmark interest rate by a quarter of a percentage point to 4.75% in June and economists expect another cut when officials meet on Wednesday to make the next rate decision.
The MNP report reveals that 46 per cent of Canadians are $200 or less away from not being able to meet all their financial obligations, while three in ten say they are unable to pay their bills and debts.
MNP President Grant Bazian says that with prices for many essentials still high, “many have yet to see a significant decrease in their monthly spending.” […] to ease the financial burden.”
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