14 June 2011
The BoC has kept its key rate at 1% level since September. According to the Certified General Accountants Association of Canada, this tendency caused record high debt levels.
Actually, Canadian household debt has reached a record $1.5 trillion. Moreover, half of the citizens with debts have to borrow just to afford day-to-day living expenses, including food, housing and transportation.
In TD’s opinion, such debt levels partly affected the slowdown in Canadian growth. The deal is that households can’t afford to spend more and stimulate the economy.
It’s obvious that when the recovery is slowing, job creation is slowing as well. The TD Bank expects the unemployment rate in Canada to remain above 7% until the end of 2013.
In this case, Canada will depend more on exports and business investment.