Economy could tank if interest rates are upped: top banker
Posted April 6, 2012 8:47 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Bank of Canada boss Mark Carney says there’s real cause for concern.
With household debt at its highest level ever, Carney fears our economy could tank if he upped interest rates to stop you from diving into even deeper pools of red ink. He also admits raising interest rates isn’t completely out of the question.
“In exceptional circumstances that threaten financial stability such as household debt, the bank, under flexible inflation targeting, could use monetary policy,” he says.
Carney stresses that if we continue spending more than we make, he may be forced to take action.
“That factors into our decision making without question,” he warns. “It’s very clear in our renewal of the inflation control agreement with the Government of Canada and we continue to monitor the situation.”
The latest stats show we’re spending a $1.51 for every dollar we make.
