This is an opinion piece from Martin Pelletier in the Financial Post:
Bank of Canada governor Mark Carney has been warning consumers for some time not to get too comfortable, since higher interest rates are on the horizon. We think this is more of a scare tactic to get overleveraged consumers to rein in their borrowing levels, because Canada is certainly not on solid enough footing economically to raise interest rates, at least not until its trade partners do.
The problem is many Canadians aren’t listening. They’re partying like its 1999, taking on vast amounts of debt because of low interest rates and robust housing prices. While the level of household debt to GDP is falling in the U.S., it’s been increasing in Canada and now stands at more than 93 per cent.