Sentences with phrase «higher household debt»

Changing interest rates, new Canadian mortgage rules, and higher household debt leaving much of the market uncertain.

Obstfeld added that the organization sees higher household debt in many places and higher corporate debts.

YELLOWKNIFE, Northwest Territories, May 1 (Reuters)- Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt.

TORONTO, May 1 - The Canadian dollar fell to a four - week low against its U.S. counterpart on Tuesday before paring its decline, as Bank of Canada Governor Stephen Poloz said the outlook for the domestic economy is good despite the overhang of high household debt.

YELLOWKNIFE, Northwest Territories, May 1 - Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt.

While Canada's record high household debt makes the economy more vulnerable, the bank's cautious approach is helping to manage the risks, Poloz said.

And as organizations such as the IMF and the OECD have constantly warned, high household debt renders the country far more vulnerable to economic shocks.

The International Monetary Fund is the latest voice to suggest high household debt will act as a drag on economic growth in the years ahead.

Poloz said there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt.

Well - recognized risks: The Bank is focused on the impact of higher rates and high household debt burdens on consumers.

At the same time, it warned risks remain elevated, particularly high household debt levels, and measures to rein in loans to the most highly indebted households will take time to work.

The Bank of Canada has pointed to the potential hazards linked to high household debt — particularly if the country were hit by a severe recession or a prolonged period of increasing unemployment.

Could be high household debt levels, BMO said.

«We believe high household debt relative to disposable income has made the market more susceptible to market stresses like unemployment or interest rate increases,» the agency says in the assessment issued Monday.

However, the bank's statement offset the positives by pointing to potential threats: weakening oil prices that drive down inflation and the significant risks of high household debt accumulated during years of low borrowing rates.

The regulatory regime states that these changes are a result of the confluence of high household debt, and high real estate prices, and low interest rates in Canada.

Meanwhile, David Madani, the Senior Canadian Economist at Capital Economics, says that severe overvaluation, high household debt, and overbuilding is going to make the housing correction end in a way that is deeper and more prolonged than initially feared.

The market has been hit by a confluence of policies: Ontario's Fair Housing Policy, including a foreign buyers» tax aimed at cooling the market; a new mortgage stress test targeted at protecting Canadians from dangerously high household debt levels; and the Bank of Canada's moves to increase interest rates.

At a time when Canadians are grappling with historically high household debt levels — upwards of 163 per cent according to Statistics Canada — young adults are feeling insecure about their knowledge of the financial implications of homeownership.

Not exact matches

«Canadian policy - makers have allowed household debt to rise above the disturbingly high levels reached in the U.S. in 2007, raising the risk of a similar potentially disastrous deleveraging down the road,» Madani wrote.

So just how are mortgage delinquency rates so incredibly low at a time when household debt levels relative to incomes have never been higher?

By borrowing: the country's household debt to personal disposable income ratio has climbed to a record high of 152.98 %, according to Statistics Canada.

But for most households, high debt is the disease, not the cure, and adding more debt to «stimulate spending» is like trying to put out a fire with gasoline.

Vulnerabilities linked to greater imbalances in regional housing markets and the continued rise of household debt were higher than they were six months ago, the bank said in its latest financial system review.

«Domestically, the household debt level is quite high,» said Wong, a member of the opposition Parti Keadilan Rakyat (PKR).

In its latest statement, it said «household vulnerabilities have moved higher,» which is how policy makers describe the troubling nexus between excessive housing prices in many cities and record levels of household debt.

Loan delinquency climbed to 11.2 percent in the last quarter of 2016, the highest rate for all types of household debt.

Consumer purchases have been slowing down in recent months as households face higher costs for borrowing, stricter mortgage rules and large debt loads.

His comments come after the IMF in October said that Canada's high debt levels, and higher - than - average pressure on Canadian households» ability to pay down that debt in the private non-financial sector, leaves its economy more sensitive to tighter financial conditions and weaker economic activity.

The central bank noted in its statement that «financial vulnerabilities in the household sector continue to edge higher,» which is the Governing Council's way of saying that ultra-low borrowing costs continue to put upward pressure on asset prices and personal debt.

With the rate of home ownership now close to 70 %, and with household debt at a record high, much of the financial health of Canadian households is inextricably linked to home values, making it the kind of dominant concern that not only affects household finances, but consumer psychology and confidence.

In the third quarter, the ratio of household debt to disposable income rose to another record high of 165 %, nearing the peak of U.S. borrowing prior to the financial crisis.

The central bank has concerns about the ability of households to keep paying down their high levels of debt when interest rates continue their rise, as is widely expected over the coming months.

On the household - debt - to - disposable - income ratio, some experts see it as just one number out of many and insist that consideration must be given to the composition of the debt, such as how much of it is high risk.

He says the higher rates have helped keep the accumulation of household debt lower than it otherwise would have been had Canada continued with government belt - tightening approaches of the past.

In Canada, household debt has reached an average that's approaching 150 % of disposable income, a record high.

Even if it is uncertain where the danger zones begin for the household - debt ratio, the briefing note to Morneau said there are «clear negative consequences» for the economy if the number gets too high or too low.

Any number of shocks could send Canada's house of cards tumbling, the bank says, particularly higher borrowing costs that pinches households already carrying record high levels of debt.

So, in summary these are some of the themes we might expect to see in the next chapter — the impact of technology and the growth of Asia; the normalisation of monetary conditions; the effects of higher levels of household debt; and the capability of our workforce and businesses to be flexible, innovative and adaptable.

The third question we have focused on over recent times is the implications of the high and rising level of household debt.

To date, households have been coping reasonably well with the higher debt levels.

I believe that Canada's high house prices in relation to incomes, combined with record household debt levels and overinvestment in residential construction, will cause a severe correction in the real estate market.

The low level of interest rates means that even though debt levels are higher, the share of household income devoted to paying mortgage interest is lower than it has been for some time.

This brings me to a third plot line: that is, how we deal with the higher level of household debt and higher housing prices, especially in a world of more normal interest rates.

Risks associated with the Consumer Discretionary sector include, among others, apparel price deflation due to low - cost entries, high inventory levels and pressure from e-commerce players; reduction in traditional advertising dollars; increasing household debt levels that could limit consumer appetite for discretionary purchases; declining consumer acceptance of new product introductions; and geopolitical uncertainty that could impact consumer sentiment.

At the heart of this uncertainty is the high level of household debt.

However, in comparison to households that only hold owner - occupier debt, there is evidence that investors tend to accumulate higher savings in the form of other assets (such as paying ahead of schedule on a loan for their own home, as well as accumulating equities, bank accounts and other financial instruments).

In a low - inflation environment, nominal interest rates are also low, and households are able to service much higher levels of debt than they could in the past.

Another worry, recently highlighted by the International Monetary Fund, is historically high Canadian household debt compared to incomes.

Millennials have grown up in the shadow of the Great Recession, are saddled with higher education debt and housing costs, and are forming households later.