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OTTAWA, Sept 11 (Reuters) – The ratio of Canadian household debt to income posted a record drop in the second quarter as expenditures fell and government aid programs helped bolster incomes, Statistics Canada said on Friday.

The ratio – which the Bank of Canada says is a key indicator of the stresses facing Canadians – dropped to 166.8% from a revised 171.7 percent in the first quarter.

Analysts though said the recovery could be temporary, citing the continuing damage from the coronavirus epidemic and the fact record low interest rates mean borrowing money is cheap.

The Liberal government has provided more than C$200 billion ($152 billion) in direct COVID-19 support and nearly 14% of gross domestic product in total aid.

“Government transfers and reduced spending pushed household savings to an unprecedented level,” Statscan said. “This enabled households to shore up their deposit accounts while simultaneously

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