Chart of the day: Tight policy is keeping debt in check
Canada’s banking regulator said Tuesday it will continue to constrain credit in the economy by forcing banks to hold elevated levels of capital buffers. Coupled with high interest rates, the tight credit policies over the past two years have slowed the pace of new borrowing.
The chart shows that in the 12 months through March, households have increased their debt holdings by about $100 billion – less than half the pace over the same period in 2022.
