With high inflation and rising interest rates, the Bank of Canada says businesses expect sales to slow as consumers pull back on spending.
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Consumers facing high inflation and rising interest rates say they’re cutting back on spending to cope.More than seven in 10 say they’re cutting on clothing and footwear, while nearly six in ten consumers are pulling back on groceries.Article contentThe surveys “suggest that interest rate increases are working as expected in slowing spending,” CIBC’s executive director of economics Karyne Charbonneau wrote in a note to clients.
Higher interest rates are expected to slow the economy down as people and businesses pull back on spending.
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