Price Shock: How Increasing Inflation and Interest Rates Are Jolting Canadian Consumers

Consumer Debt Insights, Powered by Grant Thornton Limited

On March 2, 2022, the Bank of Canada raised its benchmark interest rate to 0.5 percent, a move that’s expected to be the first of a series of rate hikes to tame inflation that has risen to its highest point in decades. This increase affects the rates Canadian consumers pay on mortgages, car loans, lines of credit, and more.  

For Canadians who are already feeling the financial squeeze, the jolt of rising inflation combined with increased interest rates may cause them financial hardship.  

To better understand how financially prepared Canadians are for inflation, rising interest rates or other unexpected expenses Grant Thornton conducted a survey through research firm, Angus Reid. The findings of the survey informed this report.