Bank of Canada concerned about household debt

Thu Jan 21, 2010 5:06pm EST
 
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OTTAWA (Reuters) - The Bank of Canada is more worried about the level of household debt in the country than it was a year ago, central bank chief Mark Carney said on Thursday in a television interview.

"I think Canadians do know what more normal interest rates are like, and in some respects it's a statement of the obvious to say, 'Manage your personal finances so that you can comfortably service your debts in a more normal interest rate environment.' Are we more concerned? We're certainly more concerned than we were a year ago...," Carney told CBC television.

He said Canada's recession was less severe than in other economies and its gross domestic product growth will peak sooner, in the third quarter of this year, than in other countries.

(Reporting by Randall Palmer and Louise Egan; editing by Peter Galloway)