Foreigners are another source of saving, and they have played an increasingly important role over the past twenty years in financing our domestic investment. Foreign saving is identified with our current account balance: When we import more than we export in dollar terms, we borrow from foreigners.
As for household indebtedness, we have also been assessing how people are adapting to both higher interest rates and the changes to the B-20 mortgage underwriting guidelines implemented earlier this year. Box 4 in the MPR goes into some detail on the impact of these policy changes on mortgage lending. Overall, the data tell us that households are adjusting their budgets largely as expected.