Despite Survey Showing Millions Of Canadians Fearing Bankruptcy, Bank Of Canada Raises Interest Rates

Growing disconnect between what the elites say about the economy, and what Canadians are experiencing on the ground.

As I reported earlier, 33% of Canadians are worried about going bankrupt amid rising interest rates.

Another 45% say they are “feeling the effect of higher rates.”

Now, interest rates are going up again.

The Bank of Canada has raised interests rates by 25 basis points. The rate is now at 1.75%.

According to BNN Bloomberg, “More importantly, its statement dropped references to taking a “gradual approach” and added language about the need to bring rates to levels that are no longer expansionary. “Governing Council agrees that the policy interest rate will need to rise to a neutral stance to achieve the inflation target,” policy makers led by Governor Stephen Poloz said, adding the pace will depend on how Canada’s economy adjusts to higher rates and how global trade policy unfolds.”

Another interest rate hike is expected in December.

The Bank of Canada is also predicting weak economic growth of 2.1% for 2018, 2.1% for 2019, and 1.9% in 2020.

Considering population growth, that is an incredibly low number – and far below the surging growth in the United States.

Big disconnect

The fact that rates are still going up – and are likely to go up at an even faster pace soon – shows a growing disconnect between what the governing elites say about the economy and what Canadians are actually experiencing.

People can feel that the economy is not doing well, and the carbon tax is set to make things even worse.

Spencer Fernando