Bank of Canada Rate Cut Won't Spur on More Borrowing - CIBC

A recent survey by CIBC indicates that most Canadians would use a rate cut to pay down their debts faster, rather than take on more debt] indicates that most Canadians would use a rate cut to pay down their debts faster, rather than take on more debt.

• 93% of respondents said that they were unlikely to increase their borrowing if interest rates drop
• 33% said they would instead use lower rates to pay down their debt faster by maintaining their payments and paying down their principal

These finding corroborate a report from the Fraser Institute that says common fears surrounding Canadian household debt are overblown.