While Canadian policymakers will be somewhat relieved to learn that household financial leverage hasn't risen any higher this year, it hasn't fallen either, meaning that heavily indebted households are still dangerously exposed to any increases in interest rates. Furthermore, should house prices drop back, as we fear over the next few years, then the resulting decline in household net worth would act as a significant constraint on consumer spending.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.