Sentences with phrase «household debt accumulation»
«However, the long - run negative effects of debt eventually outweigh their short - term positive effects, with household debt accumulation ultimately proving to be a drag on growth.»
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The RBC paper notes that overall household debt accumulation remained flatlined at 4.2 per cent growth in May, about the same level as the previous three months.
RBC economist Laura Cooper said in a note to clients that the most likely scenario is that as housing moderates, the pace of household debt accumulation will also ease.
In reprimanding the financial sector, Flaherty again warned of risky household debt accumulation.
Not exact matches
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.
The ongoing accumulation of household debt has led to a further increase in the debt - servicing ratio; interest payments as a proportion of disposable income rose to 9.3 per cent in the September quarter (Graph 23), and are expected to rise further.
Even so, the rate of debt accumulation — for government, corporations and households — has materially slowed, suggesting that the worst of deleveraging headwinds are behind us.
Over the past year, the strong pace of debt accumulation has outstripped the growth in the household sector's assets, despite further significant gains in housing wealth (Table 9).
The reason for their frustration is Poloz's unwillingness to raise interest rates to slow the accumulation of household debt, which now is about 170 per cent of disposable income.
RBC says the steady pace of debt accumulation overall should give some comfort to the Bank of Canada, which has called household debt the No. 1 risk to the financial system and economy.
Student debt burdens are weighing on the economic fortunes of younger Americans, as households headed by young adults owing student debt lag far behind their peers in terms of wealth accumulation, according to a new Pew Research Center analysis of government data.