Poloz Speech: Bank will continue to monitor housing market imbalances closely
The Governor of the Bank of Canada Stephen Poloz is presenting the Financial System Review, providing the key highlights (via Reuters) found below.
Stronger economy, sound policies working in same direction to bring about gradual easing of vulnerabilities.
This trend should continue.
Improvements in labor market and stronger wage growth should help households adjust to higher interest rates.
Toronto housing market following similar pattern to what took place in vancouver last year.
Bank will continue to monitor housing market imbalances closely, particularly for signs of "extrapolative expectations."
Policy changes affecting housing finance are clearly step in right direction.
Will take time for these changes, and effects of recent rate increases, to significantly reduce vulnerabilities.
BOC: Level of household debt relative to income remains high and continues to rise.
"Elevated household indebtedness remains most important vulnerability to the financial system," the Bank of Canada said in its Financial System Review on Tuesday.
Canada: Downbeat retail sales not enough to sink a January rate hike - TDS.
Analysts at TDS note that Canada’s retail sales rose by 0.1% m/m in September, well below TD's on-consensus forecast for a 1.0% increase, though sales were revised higher for August.
About Stephen Poloz
Stephen S. Poloz was appointed Governor of the Bank of Canada, effective 3 June 2013, for a term of seven years. As Governor, he is also Chairman of the Board of Directors of the Bank. Mr. Poloz is a Certified International Trade Professional and a graduate of Columbia University’s Senior Executive Program. He has been a visiting scholar at the International Monetary Fund in Washington, D.C., and at the Economic Planning Agency in Tokyo, Japan. Mr. Poloz has taught economics at the University of Western Ontario, Concordia University and Queen’s School of Business. He is a past president of the Ottawa Economics Association.