Lieutenant Governor Carolyn Rogers stated in a speech delivered at the University of Ottawa that rising interest rates are starting to slow down the Canadian economy, putting pressure on households with high debt.
“It will take time to get back to strong growth with low inflation, but we’ll get there,” he said.
Featured Statements
Rogers said the bank was keeping an eye on how the combination of high house prices and high household debt – both longstanding economic vulnerabilities in Canada – could affect the stability of the financial system.
“It is true that the risk of a trigger that affects financial stability has increased with the rise in rates, but there are good reasons to believe that the system as a whole will be able to weather this period of stress and remain resilient,” he added, citing reforms since the global financial crisis to shore up the system.
USD/CAD Update
The USD/CAD pair has been a back and forth trade in the US session, trading between 1.3383 and 1.3453 so far this day. At 1.3397, the pair is down 0.4% as the US dollar has pulled back across the board, while investors have put aside concerns over the COVID outbreaks in China.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
