The Globe and Mail reports in its Thursday edition that
CIBC economist Nick Exarhos
says the Bank of Canada's stronger language
regarding housing risks in Vancouver and Toronto signals rates are not climbing any time soon. The Globe's Bill Curry and Alicia Siekierski write that
Mr. Exarhos says, "I think it's a relatively firm signal
that the bank is going to be
on the sidelines for the foreseeable
future."
BOC senior deputy
governor Carolyn Wilkins reiterated
the bank's position outlined
in last month's financial system
review that the housing price
growth rates are outpacing fundamentals
and are unsustainable.
Scotiabank Economics vice-president Derek Holt says the BOC's warning on
vulnerabilities in Vancouver and
Toronto indicates that there will
be a prolonged pause of the interest
rate.
Mr. Holt says, "The impact of the Bank of
Canada's rate cut, and also global
bond market developments, has
been to add further heat to Canadian
housing markets."
BOC officials said Wednesday they believe the weak
start to 2016 was largely temporary. They stood by the view
that exports unrelated to commodities
are picking up the slack
created by low oil prices and a
struggling energy sector.
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