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Poloz Expects Canada’s High Household Debt Loads to Persist

  • Central bank chief says borrowing costs are bound to increase
  • Policy makers will focus on vulnerabilities to higher rates
Stephen Poloz
Stephen PolozPhotographer: David Kawai/Bloomberg
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Bank of Canada Governor Stephen Poloz said he expects the nation’s high household debt levels will persist for years, leaving the economy more sensitive than before to interest rate increases.

In a speech Tuesday on how the central bank plans to incorporate large household debt levels into future rate-hike deliberations, Poloz said he needs to worry about the “sheer size” of the debt and will be closely watching the impact of higher borrowing costs on the most vulnerable households.