The Globe and Mail reports in its Thursday edition that the affordability of Canada's housing market is not the job of Bank of Canada Governor Stephen Poloz.
The Globe's David Parkinson writes that paradoxically, however, it is his worry.
This week, Mr. Poloz waded deep into the housing weeds, including in areas that are beyond the purview of the BOC. His call for innovations in Canada's mortgage market prompted much head-scratching in the banking sector, which had no idea Mr. Poloz was focused on something the BOC does not regulate.
The Globe says the BOC wants the world to know it is keenly aware of the potential risks posed by the housing market to the country's economic outlook and its financial stability. Despite its decision to raise interest rates last year, it has not taken its eye off the housing ball and may be boosting its focus on this key segment of the economy. The heightened state of Canada's housing sector and household debt means that the fallout may be substantial, and Mr. Poloz knows it. What we are seeing here is a central bank that is pedalling as fast as it can to understand and anticipate that fallout, even as it resists letting those concerns leak too far into its rate decisions.
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