Central Banks
Bank of Canada Says Households Can Cope With Higher Rates
- Financial system remains resilient, bank says in annual review
- Renters’ debt, stretched asset valuations flagged as key risks
The Bank of Canada says households can weather higher borrowing costs, but flagged rising asset valuations and financial stress among renters as risks to the outlook.
Canadians are “proactively” adjusting to higher interest rates, and the financial system “remains resilient,” the central bank said in its annual review of the system published Thursday. And while payments have risen for about half of the country’s mortgages, households have higher wages and savings, officials said, and they’re adjusting their spending patterns.