Delinquency rates in Canada continued to march higher in the first three months of 2019 as consumers piled on more debt, according to a new report from Equifax Canada. The report, released Tuesday, revealed the national 90-day non-mortgage delinquency rate rose 3.5 per cent to 1.12 per cent in the first quarter of this year, with seniors leading the way as the delinquency rate for that demographic rose 9.4 per cent year-over-year.
The report also revealed the average debt per Canadian consumer – including mortgages – totaled $71,300 in the first quarter, marking a 2.6 per cent increase compared to the same period last year.
This is leaving the Bank of Canada in a predicament, it may be forced to drop interest rates to match the U.S, when it wants so hike rates in order to control debt levels. If it leaves rates unchanged the Canadian dollar will rally causing Canadian exports to become more expensive and impacting the economy.
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