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Canadians won’t borrow more if Bank of Canada cuts rate: CIBC

Poll says most would use a rate cut as an opportunity to accelerate debt repayment.


July 14, 2015
by The Canadian Press

TORONTO — A new poll suggests policy-makers should have little fear of Canadians taking on more debt if the Bank of Canada moves to lower interest rates.

The poll, issued by the Canadian Imperial Bank of Commerce, found that 93% of respondents said they were unlikely to increase their borrowing if rates drop.

That compared with only 7% who said they would consider adding more debt if rates come down further.

Meanwhile, one-third of those polled said they would use a rate cut as an opportunity to accelerate debt repayment.

There is widespread speculation the Bank of Canada might reduce its trend-setting policy rate in an attempt to stimulate the economy, which many believe has slipped into a technical recession – defined as two consecutive quarters of negative growth.

© 2015 The Canadian Press

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