Canada Consumer Debt Signals Carney Rate Increase: Chart of Day
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Canadians are getting deeper into debt, fueling spending and increasing pressure on the Bank of Canada to raise interest rates even as growth slows.
The CHART OF THE DAY shows how the ratio of household debt to disposable income in Canada is nearing U.S. levels, according to data from Statistics Canada, the Federal Reserve and the Bureau of Economic Analysis. The Canadian ratio rose to 1.46 in the first quarter from 1.09 in 2000. In the U.S., the ratio fell to 1.53 from a peak of 1.66 in 2008.