RBC’s McKay says money not spent on debt servicing is boosting other sectors

RBC chief executive Dave McKay speaks at the banks annual meeting in Toronto.

TORONTO — The chief executive of RBC says the slowdown in home buying has helped allow consumers to keep spending to boost the wider economy.

Speaking at RBC’s bank CEO conference Tuesday, Dave McKay says money that Canadians would otherwise be devoting to debt servicing is instead going to buying goods and services.

He says the low activity in condo pre-sales and construction does weigh on the economy, but that higher spending elsewhere has helped create jobs and stabilize employment in the country.

McKay says the trend has helped offset trade headwinds in the economy, including tariffs on some sectors like metals and autos.

Despite the continued spending, he says many are struggling and that growing inequality is increasingly driving politics.

He says a key risk ahead is the rising disparity and political shift it’s creating, especially in the United States.

This report by The Canadian Press was first published Jan. 6, 2026.

Ian Bickis, The Canadian Press