Thank you, Governor and Deputy Governor.
You identify in your report, as one of the risks, that Canadian households are taking on high levels of debt. These levels, in relation to income, are among the highest in the developed world. You have publicly spoken about the dilemma you face, that if you raise rates to discourage more borrowing, you may ultimately cause stress and strain on existing households, given the debt levels they already have.
How much of an interest rate increase could households absorb, given their existing levels of indebtedness?