Not exact matches
This is because interest rate changes have their largest effect on inflation risk, while stronger macroprudential settings will lead to a
higher quality of
household indebtedness over time.
That's about as
high as U.S.
household indebtedness before the housing crash there — a scary thought when combined with international concerns that parts of Canada are in a housing bubble.
The budget office also noted that
indebtedness has continued to edge
higher in Canada, which has seen the largest increase in
household debt relative to income of any G7 country since 2000.
The Bank suggests that «given elevated
household indebtedness, close attention will be paid to the sensitivity of the economy to
higher interest rates.»
The guidelines, known as B20, are aimed at curbing risky lending amid rising
household indebtedness and
high home prices in some markets.