Bank of Canada holds all the cards for consumers after punishing year for personal finances, says poll
The Bank of Canada holds the cards for a better year ahead after Canadians’ personal finances were hit hard in 2023, according to the latest version of a multi-year survey of household finances and the state of the economy.
People are now in a much worse situation than they were at the end of last year across a variety of metrics — from being able to make ends meet each month to feeding their family, the latest version of the Maru Household Outlook Index (MHOI) said.
“This survey is pocketbook oriented,” said John Wright, executive vice-president of Maru Public Opinion. “You can’t escape the fact that the majority are feeling really bad about the economy.”
He said all eyes in 2024 will be on the Bank of Canada, which holds the cards for consumer sentiment about their financial futures.
“The only institution that holds any sway is the Bank of Canada and people will be watching that very closely,” he said, adding that a signal for even a 25-basis-point cut to the current 5 per cent interest rate will lift consumer sentiment.
Until then, the list of financial trouble spots is long.
On the top line, 28 per cent said they are worse off than they were at the same time last year, an increase of four percentage points from a year ago, according to Maru’s November survey, and 37 per cent said they are struggling to make ends meet compared to 34 per cent last year.
Another 19 per cent, up from 12 per cent a year ago, said they don’t have the means to buy what they need for themselves or their family, and 57 per cent said they don’t have enough saved for the future compared to 64 per cent last December. Just 59 per cent say they earn a livable wage, down from 64 per cent in 2022.
More people are also afraid of losing their jobs —
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