- 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.