Bank of Canada Says Household Debt and Home Prices Key Risks for Financial System

Bank of Canada Says Household Debt and Home Prices Key Risks for Financial System
The Bank of Canada building is seen in Ottawa on April 15, 2020. The Canadian Press/Adrian Wyld
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The Bank of Canada said vulnerabilities from high household debt and elevated housing prices have increased and pose key risks to the Canadian financial system.

In its latest financial system review, the central bank said Thursday the twin factors have increased the downside risk to economic growth as rising rates meant to counter inflation increase the chance of households having to divert consumption towards debt repayments.