A possibly inevitable recession won't hit all provinces equally. Canada recession interestrates economy
1:43 PM Dec 14, 2022
“Pausing interest rate hikes won’t prevent a Canadian recession in the year ahead,” says the report, written by economists Craig Wright, Robert Hogue, and Nathan Janzen. “A mild downturn is probably already a given in light of the current restrictive level of interest rates.”bringing its overnight lending rate to 4.25%
Higher rates mean higher household debt payments, which RBC predicts will “spike to record levels by the end of next year,” eating up Canadians’ disposable income. In fact, RBC expects higher debt payments, combined with inflationary pressure, to cut $3,000 from household purchasing power next year. “The Bank of Canada’s Q4 Business Outlook Survey hinted that the re-pricing frenzy as pandemic lockdowns eased may have run its course as businesses pay closer attention to competitive pressures before passing along cost increases to customers,” RBC says.
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