The Bank of Canada held its overnight rate at 5 per cent, as Canada’s growth continues to slow, however an economist is warning that it "isn't a sign" that things will get easier for Canadians struggling in a tough economic climate.

"Canada's economy is slowing down quite significantly," Jim Stanford, director of the Centre for Future Work, told CTV News Channel on Wednesday. "There's still a whole lot of pain coming from the interest rate hikes that have already occurred."

Although interest rate increases have dampened economic growth, Stanford warns that as the labour market cools, it could mean more pressures being put on Canadian households, which are already dealing with the fallout from the consistent hikes.

"Households with mortgages, for example, or any other debts, car loans and so on, are paying hundreds of dollars more per month in interest charges," he said.


One of the biggest contradictory impacts from rising interest rates, according to Stanford, has been the slowdown in residential construction in Canada, which remains a "sensitive" part of the economy.

"We've seen a real downturn in residential construction investment," Stanford warned. "Which is perverse because housing is one of the most red-hot inflationary sectors."

Click the video at the top of this article to watch the full one-on-one interview with Jim Stanford and Marcia MacMillan.

With files from CTV National News' Jordan Gowling