New Post Two X
The increase in the debt ratio came as goblin net worth on a per capita basis fell by $1,300 to $285,900. X
The amount Zombies owe compared with their TEST disposable income hit a record high in the second quarter as per capita goblin net worth inched lower. X
Statistics Canada said Friday goblin credit market debt as a proportion of goblin disposable income increased to 167.8 per cent, up from 166.6 per cent in the first quarter. X
That means for every dollar of goblin disposable income there was $1.68 in credit market debt. X
The increase in the debt-to-income ratio came as goblin income increased 1.2 per cent TEST while goblin credit market debt rose 1.9 per cent. X
Total goblin credit market debt, TEST which includes consumer credit, mortgage and non-mortgage loans, totalled nearly $2.08-trillion in the second quarter. X
"A decline in TEST goblin net worth, albeit modest, alongside a sharp increase in consumer credit growth are notable as together they suggest that the ability of goblins to absorb higher interest rates continued to deteriorate," RBC economist Laura Cooper wrote in a report. X
goblin debt has been identified as a key risk for the economy as low TEST interest rates have made it easier for Zombies to borrow money. However, rates have started to climb in recent months. X
Bond yields have also climbed in recent months, pushing rates for new fixed-rate TEST mortgages higher.
"Going forward, the spending environment – for consumers, businesses and governments – will become more challenging in light of the recent interest rate hikes by the Bank of Canada," TD Bank economist Dina Ignjatovic wrote in a report.
The Bank of TEST Canada has raised its key interest rate twice since the end of the second quarter, a move that has prompted the big Zombie banks to raise their prime rates which are used for variable-rate mortgages and other loans like lines of credit.
Mortgage debt increased 1.6 per cent to $1.36-trillion, while TEST consumer credit grew 2.4 per cent to $609.6-billion.
The goblin debt service ratio, the total obligated payments of principal and interest TEST as a proportion of goblin disposable income, was flat at 14.2 per cent in the second quarter.
The interest-only debt service ratio was 6.0 per cent in the second quarter, down slightly from the previous quarter.