The central bank has released its four-quarter consumer expectations and business outlook surveys. revealing how Canadians are doing amid higher interest rates and inflation.

 

 

About two-thirds of consumers were spending less or planning to do so because of higher prices.

However, eight-in-ten with a mortgage are somewhat or very confident they’ll be able to make higher payments.

 

 

On the business side, the Bank of Canada found weaker demand and renewed competitive pressures have slowed down prices increases.

Businesses also expect wage growth to remain above average until next year.

The bank’s next interest rate announcement is on January 24, when it’s likely to keep its key rate where it is.

After raising rates to a 22-year high of 5% last year, the central bank’s left them on hold since July.

Experts think it will begin cutting rates in the first half of this year.