Dec
15
Poloz Sees Tighter Mortgage Rules Helping Ease Housing Risks
By-
Bank of Canada also flags consumer debt as oil shock fades
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Latest financial stability report reflects weaker fundamentals
Stephen Poloz
Photographer: David Kawai/Bloomberg
The Bank of Canada said elevated levels of household debt and imbalances in the housing market remain the primary risks to the country’s financial system, dangers that new government rules will mitigate over time.
“Overall, the risk of nationwide household financial stress combined with a sharp correction in house prices across the country remains ‘elevated,’” policy makers led by Governor Stephen Poloz said Thursday in their semi-annual Financial System Review. “Since the June FSR, the likelihood of this risk materializing has increased modestly as a result of weaker economic fundamentals.”…
Poloz Sees Tighter Mortgage Rules Helping Ease Housing Risks
