Free Trial

MNI BRIEF: Canada Household Debt Tops CAD3 Trillion

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)

MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.