Sentences with phrase «risk of household debt»

These new rates increased the risk of household debt.

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YELLOWKNIFE, Northwest Territories, May 1 (Reuters)- Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt.

YELLOWKNIFE, Northwest Territories, May 1 - Bank of Canada Governor Stephen Poloz said on Tuesday there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt.

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.

Meanwhile, he is seriously worried about the side effects of low rates, repeatedly citing household debt as the biggest domestic risk to Canada.

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.

The Bank of Canada, for one, has carefully assessed the economic risks of consumer debt in order to determine how quickly it can raise interest rates without piling on too many debt - servicing costs for over-stretched households.

On the household - debt - to - disposable - income ratio, some experts see it as just one number out of many and insist that consideration must be given to the composition of the debt, such as how much of it is high risk.

Speaking in Montreal on Thursday, central bank governor Stephen Poloz called household debt a major risk to the Canadian economy, suggesting the fear of stoking more borrowing as one reason he has not been even more dovish on interest rate policy.

Poloz said there is good reason to believe the central bank can manage the risks of Canada's high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt.

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.

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.

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

Well - recognized risks: The Bank is focused on the impact of higher rates and high household debt burdens on consumers.

There is little risk to overshooting on inflation in the near - term, and even if there were, anything that helps facilitate a reduction in the real burden of debt for Canadian households is not something I'd bemoan.

An additional consideration in this environment was the risk to the economy posed by the build - up of household debt and the associated increases in house prices.

Some economists also argue that lower household debt could also reduce financial fragility and worsen the risk of another crisis.

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.

Canadians» borrowing has entered «uncharted territory» and the risks associated with the level of debt households are carrying is something that «we all have to take seriously,» Bank of Canada Governor Mark Carney said Tuesday.

Bank of Canada governor Stephen Poloz says risks from household debt and the housing market will be better addressed by the government's recent policy moves than by adjusting interest rates.

The presentation contained a warning: the steady climb of the household debt - to - GDP level had put Canada's long - term economic growth prospects at risk.

As always, policy makers made a point of mentioning the troubles of growing household debt, citing it as the biggest domestic economic risk.

By tightening lending rules, Flaherty hoped to lower the risk to taxpayers and curb excessive rates of household debt.

The Bank of Canada, in a public statement, urged the fact that addition to the debt burden to Canadian households may be one of the highest domestic risks to the economy in the following year.

Last week, the central bank revealed that the percentage of high - risk households, or homes where 40 % of income is allocated to paying down debt, would jump through the roof by 2012 thanks to rising interest rates.

Using the National Retirement Risk Index (NRRI), which measures the percentage of working - age households «at risk» of falling short in retirement, the analysis found that if NRRI households had started out with today's student debt levels, the index would be 56.2 percent of U.S. households at risk instead of the already alarming 51.6 percRisk Index (NRRI), which measures the percentage of working - age households «at risk» of falling short in retirement, the analysis found that if NRRI households had started out with today's student debt levels, the index would be 56.2 percent of U.S. households at risk instead of the already alarming 51.6 percrisk» of falling short in retirement, the analysis found that if NRRI households had started out with today's student debt levels, the index would be 56.2 percent of U.S. households at risk instead of the already alarming 51.6 percrisk instead of the already alarming 51.6 percent.

«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 risk the economic growth we are working so hard to accelerate,» Morneau said in a speech to the Toronto Region Board of Trade.

However, the bank's statement offset the positives by pointing to potential threats: weakening oil prices that drive down inflation and the significant risks of high household debt accumulated during years of low borrowing rates.

Canadians households are stretched thin already, and heavy debt burdens are putting more Canadians at risk of financial default in the event of interest rates increases, unemployment or other economic hardships.

«In line with past reports, the Bank of Canada continues to identify elevated household debt and overvaluation in the housing market as the biggest risks to the financial system.»