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COVID-19 Number of very debt-rich households increasing as aid ends: BoC-nationwide

A senior Canadian bank official said the number of households with high debt appears to be increasing again as the government’s pandemic aid declines.

In today’s speech to a conference held by the Ontario Securities and Exchange Surveillance Commission, Vice Governor Paul Budley said unprecedented federal aid and restrictions on Canadian homes limiting where consumers could spend during a pandemic. He says it helped to strengthen his finances.

But now he states that the vulnerabilities associated with increasing household debt appear to be increasing again after a brief pause.

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According to Beaudry, bank calculations suggest a percentage of households with high debt if this year exceeds the pre-pandemic peak recorded in 2019.

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He partially points out that historically low interest rates have continued for a long time as a reason for households to assume more debt.

That is why the economy is likely to be more sensitive to rising borrowing costs, he warns.


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High interest rate lending begins during the COVID-19 pandemic


High interest rate lending begins during the COVID-19 pandemic – October 23, 2021

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COVID-19 Number of very debt-rich households increasing as aid ends: BoC-nationwide

Source link COVID-19 Number of very debt-rich households increasing as aid ends: BoC-nationwide

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