Nothing like sticking your head in a vice.
Household debt in Canada is now the highest of any G7 country, according to data released in late May by the Canadian Mortgage & Housing Corporation (CMHC)
The amount owed by Canadian households is also higher than the country’s entire GDP!
Let’s not forget that at the same time the Bank of Canada has increased their key overnight lending rate from 0.25% in February 2022 to 4.75% on June 7, 2023. Nothing like a 19-fold increase in rates in a period of only 16 months to tighten down the screws just a little more. But wait, there’s more; Economist are predicting another 25 basis point hike to 5% July 12. If this indeed is the case this would bring the key rate to its highest level since 2001.
Take a bow Canada. We’re number at something!
Read the full report here