Sentences with phrase «pace of household debt»

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.

Not exact matches

Growth in household credit has remained relatively stable at around 5.5 per cent since the beginning of the year, a pace below the historical average (Chart 22), following an extended period of rapid growth that led to a substantial buildup in household debt.

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).

«Canadian households did not only resist the temptation of low rates, they used those low rates to pay down debt at a pace not seen before,» he said.

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.

The bank also expects the powerful pace of household spending — particularly in residential investment — to eventually slow next year as debt levels and borrowing costs rise.

Canadian households were already stretched before the holidays, with the pace of debt growth far outstripping wages over the last decade or so.

Last year, the total amount of household debt climbed at the fastest pace in more than a decade.

The most encouraging news was that households accumulated debt in the fourth quarter of last year at the slowest annualized pace since 2001, pushing the much - watched debt to disposable income ratio down two - tenths of a point to 164 per cent.

If the pace of home price appreciation slows down — or worse, prices drop — there will be consequences for households that have been piling on debt.