Our institutions should not be lulled into a false sense of security by current low rates. Households need to be prudent in their borrowing, recognising that over the life of a mortgage, interest rates will often be much higher. The weight of the adjustment beyond our shores means that demand for our products is weak and competition fierce. We must improve our competitiveness.
BIS central bankers’ speeches  1    The three main upside risks to inflation in Canada relate to the possibility of higher global inflationary pressures, stronger Canadian exports and stronger momentum in Canadian household spending.