Sentences with phrase «of household debt levels»

But the central bank has argued that the likelihood of household debt levels becoming a serious problem remains low and the situation is likely to improve once the economy starts to recover.

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

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.

It suggests the weight of a record level of household debt is starting to feel heavy.

Here are three off the top of my head: Record levels of household debt threaten future spending, too many of our companies need a weaker currency to be competitive, and international energy companies are giving up on Canada as a place to invest.

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

YELLOWKNIFE, Northwest Territories, May 1 - Bank of Canada Governor Stephen Poloz said on Tuesday that the view of the Canadian economy is quite good despite record levels of household debt, and he was confident the central bank can manage the risk of that debt even as interest rates rise.

«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.

That's a drag on growth, but a welcome one if it means households have begun doing something about record levels of debt.

There's an economic imperative at play, of course: thanks to steadily increasing costs of living, and record levels of household debt, many sexagenarians and even septuagenarians simply can't afford to stop working.

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.»

The house - price bubble, combined with record levels of household debt, represent the biggest threat facing the Canadian economy; the sooner real - estate markets mellow and Canadians lower their debt burdens, the better.

If we came to learn that excessive household debt posed a bigger threat to economic growth than does a certain level of government debt, then policy makers would want to take that into account when setting interest rates.

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

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

Bank of Canada governor Mark Carney has warned that the biggest risk to the financial system is now household debt, even if it's still «relatively low» and unlikely to reach levels that could cripple banks» balance sheets.

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.

But against the backdrop of slow average wage gains and record levels of household debt, she says, «it looks like the average Canadian is about to get into a pretty serious squeeze play.»

Across the developed world, it's contributed to record levels of household debt.

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.

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.

One was to send household debt levels up to nearly 150 % of income, a record.

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.

At that time, the main data sources on consumer debt consisted of loan - level data sets on specific categories of loans, such as mortgages, as well as aggregated data on household sector debt from the Board of Governors» Flow of Funds statistical release.

The bubbling interest comes as regulators grow increasingly worried about debt levels and the capacity of ordinary households to pay back big loans on expensive houses.

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.

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.

The Report is based on data from the New York Fed's Consumer Credit Panel, a nationally representative sample of individual - and household - level debt and credit records drawn from anonymized Equifax credit data.

«However, historically high levels of household debt and low wage growth will offset some of the positive impact of recent strong employment data, so consumers are likely to remain cautious.»

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.

Part of this additional spending can be used to pay down existing household debt, enabling a significant level of debt reduction overall.39»

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.

However, I suspect that spending by the average household, strapped with a record level of debt, will continue to contract — especially spending on discretionary items.

This he presents unequivocally as good news, since it suggests an easing of high, mortgage - driven household debt levels that have been among Carney's more acute longstanding concerns about the Canadian economy.

One reason for trying to understand this complex picture is that the level of household debt is relatively high.

«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?

«He doesn't want to leave any question about the independence of the Governor of the Bank of Canada, but we have a situation under the Conservative government that has allowed record household debt... and the bank is really caught between a rock and a hard place, because these high debt levels create pressure for higher interest rates, but inflation is very low.

Report to CMHC warns steady climb of household debt - to - GDP level puts Canada's economic growth prospects at risk

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

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.