BOC’s Rogers: Canadians are feeling some pressure as they adjust to higher rates

  • It’s easy to see a world where rates are persistently higher
  • It’s important for people and businesses to adjust to a potentially higher-rate environment
  • Adjusting early and bit by bit lowers the risk of abrupt steps later
  • Adjustment to higher rates is well underway globally, there is less wiggle room for the global financial sector in the event of a shock
  • Canadians are adjusting as the y feel some pressure and juggle effects of inflation and higher rates
  • Data suggest most Canadian businesses can service existing debt as servicing costs rise and revenue growth slows
  • Bank is watching high levels of fixed-payment mortgage debt, given that 60% of mortgages holders must renew by end-2026
  • Most mortgage holders still expect they can deal with higher payments when they renew

No doubt the BOC is keeping a close eye on Canadian housing and mortgages.

This article was written by Adam Button at Source