Household Debt and Fed Rates Are Front and Center for Poloz
- Bank of Canada governor expected to increase rates this week
- Highest G-7 debt loads make consumers more vulnerable to hikes
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The Bank of Canada is already well into the process of raising interest rates to more normal levels and another increase is expected on Wednesday, after the economy’s stellar performance last year.
The big questions are how quickly do they continue moving up from here, how closely will they follow U.S. increases and where will rates settle. Markets are pricing in at least three more increases this year, which would bring the benchmark rate to 1.75 percent.