Debt levels could post challenge to Bank of Canada monetary policy framework

WINNIPEG _ A senior Bank of Canada official says the central bank is looking at how the high levels of household and public debt could pose a challenge to how it manages monetary policy.

In a speech to the Manitoba Association for Business Economists on Thursday, Lawrence Schembri said low interest rates have encouraged households to take on debt and higher levels of government debt are largely a legacy of the financial crisis in 2008-09.

“Now there is less space, on average, across the G7...

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