The Canadian Central Bank'S Temporary Stability Policy, Interest Rate And Economic Prospects Are Still Worrying.

The Central Bank of Canada will issue policy decisions late on Wednesday, May 27th (May 27th). Although the central bank has been fighting against interest rates, it is almost everyone's offensive. However, Canada's economic situation this week has once again become the focus of the market because of its family debt problem. Economists are questioning whether the government can successfully lead people out of heavy private debt and restore economic development.

An independent think-tank, the Philippines Research Institute, published an article last Wednesday (May 20th).

The market's concern about the Canadian private debt problem is totally unnecessary, pointing out that there is little evidence that the Canadian people are borrowing too much irresponsibly.

However, this conclusion was opposed by David Madani, a leading North American economist.

Ma Danny said that the report of the Fraser Institute is totally misleading the market. The report only points out the amount of interest payments, rather than the principal amount that has not yet been paid.

Madani pointed out that the normally unpaid principal amount can represent the level of debt, especially for housing mortgage loans.

Madani also said that if the loan interest rate goes up in the next few years, the Canadian family debt burden will become even heavier.

Canada's housing and debt levels have been rising since the global economic crisis in 2008.

Canada's former central bank governor Carney (Mark Carney) warned that the Canadian family debt level has increased repeatedly during its term of office.

According to the latest statistics released by the statistical bureau of Canada in March, the average household income in Canada in the fourth quarter of 2014 was about 1.63 yuan (US $1.32) per 1 Canadian dollars.

It has reached its highest level ever.

Because oil is a pillar industry in Canada, the sharp drop in oil prices has made Canada's economy worse.

In order to stimulate economic development, the Bank of Canada announced a rate cut in January this year, and market participants are waiting for the central bank's monetary policy resolution this week.

Canada's current central bank governor Poloz (Stephen Poloz) said last week that interest rate cuts would help reduce the debt burden of Canadian households.

At the same time, the research report released last week by the Fraser Institute also pointed out that the rise in Canadian debt levels has been alleviated due to rising asset and net capital levels.

This conclusion was once again opposed by economists.

Kean, head of the school of economics, politics and history, University of Kingston, London, said Steve Keen.

Debt relief is a fallacy.

Kean pointed out that asset value is debt value, there is a feedback process between the two, that is, the increase of assets also represents the rise of debt level.

It would be more sensible to compare debt levels to income levels.

Kay said that the Central Bank of Canada will maintain its 0.75% overnight interest rate unchanged in the resolution issued later, and the first quarter gross domestic product (GDP) growth in Canada announced on Friday (May 29th) is expected to be 0.2%, far below the 2.5% level in the second half of 2014.