Canadians Grow Cautious on Spending as Mortgage Renewals Loom

Canadians are becoming more cautious about spending as their mortgages come up for renewal at significantly higher interest rates. Retail sales declined by 0.1% in January, below the anticipated increase of 0.1%. Excluding automobiles, sales fell by 0.3%. The rapid growth of Canada’s population continues to inflate the numbers, with total sales still 2.2% lower than a year ago. Warm early-year weather may have also contributed to the sales, according to CIBC. The market currently anticipates a 49% likelihood of an interest rate reduction in June, indicating a close decision.

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