03:57:50 EST Thu 02 Feb 2023
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Canadian Imperial Bank of Commerce (CIBC)
Symbol CM
Shares Issued 906,003,982
Close 2022-11-22 C$ 64.29
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FP says RBC, rivals hear BOC deputy flag debt risk

2022-11-23 08:49 ET - In the News

See In the News (C-RY) Royal Bank of Canada

The Financial Post reports in its Wednesday, Nov. 23, edition that Bank of Canada senior deputy governor Carolyn Rogers acknowledged that rising rates were putting a greater strain on young Canadians -- especially if they bought a home during the pandemic. The Post's Stephanie Hughes writes that Ms. Rogers flagged rising household debt rates as a growing financial system risk, which escalated during the pandemic as Canadians piled into mortgages when interest rates were at historic lows. The BOC's aggressive rate hiking cycle, which brought the policy rate from near-zero at the start of the year to 3.75 per cent, is beginning to take its toll on highly indebted young Canadians. Ms. Rogers said Tuesday: "One group of Canadians who will be finding this adjustment painful are those who recently purchased a home, potentially stretching their budget to do so, and who chose a variable-rate mortgage. This is not a large share of households, but it is larger than it would have been based on historical trends. This is because more Canadians opted for a variable-rate mortgage over the last year than have in the past, at a time when housing prices were high."

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