Sentences with phrase «household debt levels in»

Bank of Canada Governor Mark Carney has issued his third warning on Canadian household debt levels in less than a week, adding Tuesday that borrowing in this country has entered «uncharted territory».

While household debt levels in the UK and US have declined since the 2008 financial crisis, levels in Australia have continued to rise.

Not exact matches

Debt levels for the average Canadian household are moving down (perhaps we've been taking those warnings from the Bank of Canada to heart), and as a result there's been «modest» growth in consumer spending, said Ferley.

U.S. household debt rose to a level not seen in five years in the third quarter of 2013, according to the latest data from the Federal Reserve Bank of New York.

He included original research that suggests a looser fiscal policy after 2010 may have resulted in a lower level of household debt today.

«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.

Previously, the Bank of Canada hinted it might raise rates to curb the borrowing binge, but in March it abruptly changed tack by affirming the household debt - to - income ratio is «stabilizing near current levels.»

But low interest rates, at least in Canada, have pushed household debt to such vertiginous levels that officials like Carney know they shouldn't be counting on consumer spending to drive the recovery — ergo, the call for more corporate investment.

«I will continue to act to ensure that household debt levels are sustainable, that lenders are acting prudently, and that increases in interest rates or a housing market downturn don't put at risk the economic growth we are working so hard to accelerate,» Morneau said.

Cheap credit has caused a host of problems: it has blown out household debt and inflated home prices in some markets to unsustainable levels.

«International research has found that highly indebted households cut back their spending to a greater degree in response to declining house prices than those with lower debt levels,» he said in a letter to the House finance committee this month.

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 debIn 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 debin many cities and record levels of household debt.

And household debt in Canada recently surpassed U.S. levels for the first time in 12 years.

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.

They also fear that at such elevated levels, many Canadian households would be unable to withstand a financial shock such as a loss of income, or a sudden spike in interest rates that raised debt services charges.

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.

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.

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.

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 pasIn 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 pasin the past.

In the case of the household sector, both Mr. Flaherty and the Governor of the Bank of Canada are warning Canadians about their high debt levels and urging them to curtail their consumption and to reduce their debt.

«The bank expects trend growth in household credit to moderate further, with the debt - to - income ratio stabilizing near current levels.»

The PBO identified four key downside risks to the private sector forecast: global growth, especially in the U.S. could be slower than anticipated; the appreciation of the Canadian dollar could adversely affect exports; sovereign debt issues in Europe could restrain recovery there and put upward pressure on global interest rates; and the high level of household debt in Canada could restrain domestic demand.

«Major declines in house prices and the continuing high level of unemployment are reflected in the various measures of household debt and credit.

And by that we mean bring an end to double - digit price gains, bring about a steep correction in house prices to levels the city's lowly middle - class incomes can afford, bring about an end to staggering household debt levels and ultimately, bring about the end of housing as the economy's engine of growth?

Minister of Finance Bill Morneau is trying to balance soaring household debt levels against the need for strength in consumer spending.

What is more, despite the increase over the past decade, household debt is still at a relatively low level in China.

In the past, China's household sector has been characterised by relatively low levels of debt.

However, this is changing, and the increase in the level of household debt over the past decade is a major shift, with significant knock - on implications for consumption.

Aggregate household debt outstanding totaled $ 12.116 trillion in the fourth quarter of 2015, 2.4 %, $ 289 billion, greater than its level of one year ago.

The recent rise in the debt - servicing ratio is largely a result of households increasing their debt levels, rather than an unexpected sharp rise in interest rates, as occurred in the late 1980s.

In U.S. families where the head of household is 75 or older, the level of debt has increased nearly 60 % from 31.2 % in 2007 to 49.8 % in 2016, according to EBRIn U.S. families where the head of household is 75 or older, the level of debt has increased nearly 60 % from 31.2 % in 2007 to 49.8 % in 2016, according to EBRin 2007 to 49.8 % in 2016, according to EBRin 2016, according to EBRI.

The bottom line: Given the significant levels of debt that remain on household and government balance sheets, inflation is likely to remain lower than what we experienced in periods leading up to the financial crisis.

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.

That is just a little over 4 years, and we can expect a continuation of deleveraging for many years to come - we have a long way to go in order to get back to the levels of household debt relative to GDP or Personal Disposable Income (PDI).

As households have simultaneously increased their debt levels and equity holdings, they are now much more exposed to changes in interest rates and equity prices than has been the case in previous cycles.

Nonetheless, the higher debt levels suggest that households may have become more vulnerable to unforeseen falls in house prices or changes in household cash flow.

However, unlike in the late 1980s, the current increase in the ratio has been mainly driven by the decisions of households to increase their levels of debt, rather than by a significant and unexpected increase in interest rates.

«Today's record level of household borrowing reflects the evolution of the financial system and the comfort level of Canadians in taking on debt,» Poloz said.

Take away: Media reports points out that Australia is well above their neighbors in terms of household debt levels.

Though it boosts the economy in the short term, high levels of household debt add pressure on the economy in the long run, as households are forced to cut spending in order to repay their debt.

Canadian household debt was 167 per cent of income in the second quarter, a level that the central bank considers a threat to financial stability because a wave of personal bankruptcies and home foreclosures could cripple the banking system.

In other words, are households that can afford to meet their debt - servicing requirement likely to change their behaviour in other ways now that they have a higher debt level than formerlIn other words, are households that can afford to meet their debt - servicing requirement likely to change their behaviour in other ways now that they have a higher debt level than formerlin other ways now that they have a higher debt level than formerly?

Much as I think the expansion has a good deal further to run, I suspect that a significant number of households have chosen a debt level which makes sense in good times, but does not take into account the fact that bad times inevitably will occur at some time or other.

Compare two households — one in 1993 and the other in 2003 — that have the same percentage of their income used in debt service, and have the same gearing ratio (level of debt as a percentage of value of house), but with the 2003 household having a debt level nearly twice as high as the 1993 household.

What I would like to do tonight is to examine household debt from several perspectives in order to form a judgment on whether its current level poses risks for the economy, and what those risks might be.

The UK economy is currently among the most indebted in the OECD (second only to Japan in total levels of public sector, financial, and household debt).

We had among the most leveraged banks of any country, a house price boom as large as America's or Spain's, and higher levels of household debt than any other country in the world.

[14] The analysis suggests that this policy would increase spending and incomes in the economy — without increasing the level of household debt.

It led to the highest level of household debt in relation to income in the world.