Caroline Rogers, Senior Deputy Governor of the Bank of Canada, warns that interest rates will not fall to pre-Covid pandemic levels. Interest rates will remain higher because of structural changes in the global economy, excessive government debt, and geopolitical risk, according to Rogers in Vancouver. Rogers also stated that the world has already accepted the reality of increased interest rates.
Meanwhile, the Canada Housing Agency notes that the high interest rate situation puts some homeowners under pressure. According to the Canada Mortgage and Housing Corporation (CMHC), this pressure will expand further in the next two years.