More Than a Third Think Interest Rate Increase to Have Negative Impact on Their Personal Finances

More Than a Third Think Interest Rate Increase to Have Negative Impact on Their Personal Finances

Almost three quarters think Canada is more expensive than 3 years ago

Toronto, August 21^st – In a random sampling of public opinion taken by The Forum Poll™ amongst 1150 Canadian voters, almost a third (BTM2: 34%) say the increase in the Bank of Canada’s prime interest rate will have a negative impact on their finances with (22%) saying it will have at least a somewhat negative effect, and (12%) saying it will have an extremely negative effect.

Only two in ten (TOP2: 20%) say that the increase will have a positive effect, with (13%) saying it will be somewhat positive, and (6%) saying it will be extremely positive.

One third (34%) say the prime increase won’t impact them one way or another and just over one in ten (12%) say they do not know what impact it will have on their personal finances.

Respondents most likely to say that the increase will have a negative effect include those aged 35-44 (44%) or 45-54 (44%), earning $60,000-$80,000 (39%), $80,000-$100,000 (41%), or the most wealthy (39%), supporting the Green Party (48%), and with a post-graduate degree (41%).

Respondents most likely to say that the increase will have a positive effect include those aged 55-64 (25%) or 65+ (28%), the least wealthy (25%), living in the prairies (MB/SK) (23%), Alberta (20%), or BC (23%), supporting the Conservatives (20%) or Liberals (23%), and the least educated (28%).

Canada more expensive for most

More than seven in ten (71%) said that, over the last the last three years, Canada has become more expensive for their family. Fewer than one in ten (5%) said that Canada has become less expensive for their family, while two in ten (20%) said that it’s neither more nor less expensive than 3 years ago. A small proportion (4%) said that they do not know.

Respondents most likely to say that Canada has become more expensive for their family include those aged 45-54 (76%), earning $40,000-$60,000 (78%), $60,000-$80,000 (75%), or the most wealthy (76%), living in Ontario (77%), Alberta (78%), or BC (79%), supporting the Conservative (81%) or Green (79%) parties, and those with some college or university (75%).

Respondents most likely to say that Canada has become less expensive for their family are those living in Quebéc (10%) or the prairies (MB/SK) (9%). 

“Almost three quarters think Canada has become more expensive over the last three years, and with more than a third thinking that the interest rate hike by the Bank of Canada will have a negative effect on their personal finances, the rumours of another hike to come may only worsen these concerns,”said Dr. Lorne Bozinoff, President of Forum Research.

Lorne Bozinoff, Ph.D. is the president and founder of Forum Research. He can be reached at lbozinoff@forumresearch.com or at (416) 960-9603.