In the end, it’s some combination of these elements that is weighing on consumption and causing Canadians to be more cautious about their spending. The state of household finances Most Canadians are managing the higher carrying costs of their debt by scaling back their spending in some of the areas that I have just highlighted, as well as in housing.
First, it can teach us that the political will to enhance local currency bond markets needs to be accompanied by a number of supporting factors. A well-balanced regulatory regime and a stable currency – defended by an independent central bank – certainly are among these factors.