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Montreal Gazette – April 6, 2012

TORONTO – The Bank of Canada could act, as a last resort, if excessive debt levels threaten the domestic economy, Governor Mark Carney was quoted as saying on Friday.

Canada’s household debt has climbed above 150 per cent of disposable income, a level that the central bank has described as unsustainable.

“We have never been as indebted as we are today as individuals,” Carney told Canadian Press. “We’ve done analysis which shows that about 10 percent of Canadians are vulnerable if interest rates returned to more normal levels, which will happen.”

Read more: Mark Carney: Bank of Canada could act on household debt