Albertans feeling the pinch as Bank of Canada hikes key interest rate
Global News
According to the latest MNP Consumer Debt Index, nearly seven in ten people in Alberta say they are already feeling the effects of interest rate increases.
While people continue to pay more for essentials such as food and gasoline, some homeowners will again be paying more for mortgage payments.
After increasing its benchmark interest rate by a full percentage point, the Bank of Canada’s key interest rate now sits at 2.5 per cent.
According to the latest MNP Consumer Debt Index*, nearly seven in ten people in Alberta say they are already feeling the effects of interest rate increases and one-third are cutting back on essentials such as food, utilities and housing.
“It’s really important to sit and take a look at our budget,” Donna Carson, a Licensed Insolvency Trustee with MNP, said.
“When was the last time we did it? And it’s probably not looking the same with the rising interest and rising costs of everything.”
Nichola Tremblay and her husband own a home in St. Albert. She is a full-time nurse, her husband works three jobs and they have three kids.
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They have a variable rate mortgage and Tremblay said their payments will likely increase.