Conditions in the Canadian housing market remain “favorable,” with overall prices rising and few signs of excess supply, Sheryl Kennedy, deputy governor of the Bank of Canada, said in a speech on Monday. “The moderation in activity and price increases that we have seen in recent months is both expected and welcome,” Kennedy told an investment industry conference in Banff, Alberta. House prices play a big role in the nation’s economy, she said: they can directly affect inflation, consumption, and decision-making in “the real economy” if a bubble inflates or pops. Policy makers at the Bank of Canada consider those implications when setting interest rates, Kennedy said. The central bank surprised financial market watchers earlier this month when it refrained from cutting interest rates, c...
Comments
2
