Speaking in Ottawa
- effects of housing measures are targeted at pockets where vulnerabilities are highest
- will be primarily watching quality of a loan to value statistics. They should show right away a shift in behavior
- prices are a separate issue from potential for housing imbalances
- if you have strong demand in places like Toronto and Vancouver and supply constraints there will be upward pressure on prices
- how much recent rise in prices is due to self reinforcing expectations is what we can't put our finger on
Poloz was also asked about the Fed hike:
- certainly is pleasing to see growing confidence in US economic outlook
- how far bond yields rises question that remains has been orderly so far
- BOC ffactored in a rate hike in its view
BOC Wilkens chimes in as well:
- if house prices were to fall quickly might have implications for growth
- one of the major things that's different from pre-crisis is securitize markets are a lot smaller now
