BOC publishes its latest risk review
- Identifies four key risks to the financial system
- Risk of broad based drop in home prices remain elevated
- Risk of disruption from China and EM's remains elevated
- Risk of spillover from higher global premiums is moderate
- Risk of prolonged weak commodity prices is moderate
In more detail on housing
- Base case is a constructive evolution of housing imbalances
- Sees no evidence of a significant rise in delinquencies
- Overall risk level is about unchanged since June
The latest report doesn't include an overvaluation estimate like it did previously. Prior reports estimated overvalued homes of 10-30%
