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MNI BRIEF: Canada Household Debt Tops CAD3 Trillion

Policy NewsHomepageCanadaBriefGlobalStoryRegionNorth America

MNI (OTTAWA) - Canadian household debt climbed above three trillion dollars in the second quarter of this year, the federal statistics office reported Thursday, showing one of the challenges the economy faces as the central bank returns to cutting interest rates.

Those obligations increased to CAD3.01 trillion, or by 1.5% from the fourth quarter of last year, Statistics Canada figures showed, and a gain of 3.7% from a year earlier. Mortgage interest payments took up a record 8.2% of disposable income in the second quarter, up from 8.1% in the first quarter, even as the Bank of Canada made its first quarter-point interest cut in June from the highest level since 2001. Economists say the Bank has scope to cut rates steadily into early next year. (See: MNI INTERVIEW: BOC Has Scope To Cut To Neutral- BDC's Cleroux)

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MNI (OTTAWA) - Canadian household debt climbed above three trillion dollars in the second quarter of this year, the federal statistics office reported Thursday, showing one of the challenges the economy faces as the central bank returns to cutting interest rates.

Those obligations increased to CAD3.01 trillion, or by 1.5% from the fourth quarter of last year, Statistics Canada figures showed, and a gain of 3.7% from a year earlier. Mortgage interest payments took up a record 8.2% of disposable income in the second quarter, up from 8.1% in the first quarter, even as the Bank of Canada made its first quarter-point interest cut in June from the highest level since 2001. Economists say the Bank has scope to cut rates steadily into early next year. (See: MNI INTERVIEW: BOC Has Scope To Cut To Neutral- BDC's Cleroux)