TORONTO — Scorching housing activity and rising household debt have garnered a fair share of negative headlines in Canada, RBC Economics reported.
“RBC acknowledge that some of the concerns are valid, especially given that households continue to take on debt and the debt-to-income ratio clocks in at record highs nearly every quarter. The increases have been supported by healthy labor markets and low interest rates, but the bigger risk is what happens when rates rise,” said Economist Laura Cooper.
Heading into Thursday’s release of the Bank of Canada’s Financial System Review, RBC provides a quick look at a few of the key metrics the firm is watching.
The full Canadian report is available on the RBC Economics website.