The Bank of Canada said Thursday that vulnerabilities from high household debt and elevated housing prices have increased and pose key risks to the Canadian financial system, but warned that interest rates must keep rising to cool the surging cost of living. “The economy can handle increased interest rates, and it must handle increased interest rates,” Bank of Canada Governor Tiff Macklem told reporters Thursday.
- Canadian debt grew faster than earnings in second quarter: Statistics Canada
- Canada’s economy grew 0.3% in April, but signs of May cooling: Statistics Canada
- New rules to address systematic gaps in banks not enough, critics say