Canada's higher interest rates hitting low-income households harder than wealthy: StatCan

Canada's low-income households experienced a harder hit to their disposable cash in the third quarter of 2023 as higher interest rates made it more difficult for this group of Canadians to save, new data shows.

Data from Statistics Canada found the wealth gap between the top 40 and bottom 40 per cent had increased by half a percentage point, with the cost of living making it tougher for those earning less to save for a rainy day. It also found youth to be the only age group to see a drop in mortgage debt, but the inaffordability of homes may be a cause for this.

As Sean Previl reports, with the Bank of Canada's first interest rate announcement of the year looming, financial experts say it could be a while before a rate cut comes. And as a result, the rich may be seeing benefits while the poorest are finding it difficult to keep up.

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