At first glance, it might seem that the financial pressures experienced by Canadian families would have eased over the last year or so. The spike in interest rates which started in early 2022 has abated, with the Bank of Canada cutting its benchmark rate several times since mid-2023. As well, the rate of inflation, which had reached 6.8% in late 2022, began moderating during 2023 and now (as of March 2025) stands at 2.3%. It would seem, then, that both the cost of daily life (as reflected in the rate of inflation) and the cost of debt servicing (as reflected in the Bank’s benchmark interest rate) would have both become more manageable in recent months.
