His exact words were that we «must be vigilant» and not let
rising levels of household debt spiral out of control.
The third question we have focused on over recent times is the implications of the high and
rising level of household debt.
Not exact matches
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.
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.
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.
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.
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.
But the
level of household debt continues to
rise, hitting 171.1 per cent
of disposable income in the third quarter.
In other words,
rising student
debt levels aren't just the result
of a cost shift from the public to the individual family, but within the
household from the family to the individual student.