BoC's Rogers says it's easy to forecast a world where rates are persistently higher than people have grown used to in recent years

• It's important for people and businesses to plan for and adjust to a potentially higher interest rate environment.
• Adjusting early and bit by bit to higher rates lowers risk of having to take more abrupt and potentially destabilising steps later.
• We look to be in an era of higher levels of government debt; geopolitical risks could push rates higher.
• Adjustment to higher rates is well under way globally; there is less wiggle room for the global financial sector were a shock to occur.
• Canadians are adjusting, and feeling some pressure, as they juggle combined effects of inflation and higher rates.
• Data suggest most Canadian businesses can service existing debt as servicing costs climb and revenue growth slows.
• Bank is watching high levels of fixed-payment mortgage debt, given that 60% of mortgage holders must renew by end-2026.
• Most mortgage holders still expect they can deal with higher payments when they renew.

Via BoC