A recent survey shows Canadians remain pessimistic about their finances despite the Bank of Canada’s rate cut
A new survey indicates that the Bank of Canada’s recent interest rate cut in June did little to change Canadians’ negative perceptions about their personal finances, as reported by The Globe and Mail.
The MNP Consumer Debt Index, conducted quarterly by Ipsos, dropped six points from the previous quarter to 85 points, signalling increasingly negative views on respondents’ debt situations.
Two-thirds of respondents say they desperately need interest rates to go down, with more than half indicating concern that rates may not fall quickly enough to provide the financial relief they require.
The central bank lowered its benchmark interest rate by a quarter of a percentage point to 4.75 percent in June. Earlier today the Bank of Canada announced another 25-basis point cut following its July meeting.
The MNP report found that 46 percent of Canadians are $200 or less away from failing to meet all their financial obligations, while three-in-ten say they already can’t cover their bills and debt payments.
Grant Bazian, president of MNP Ltd., noted that with the prices of many daily necessities still high, “many have not seen the meaningful reduction in their monthly expenses needed to ease their financial burdens.”
