One of Bank of Canada Governor Stephen Poloz’s deputies spoke about housing this week. Lawrence Schembri was disarmingly calm while tackling a subject that can easily lead to hysterics. There was no mention of bubbles or irrational exuberance, suggesting the central bank continues to believe that the situation is under control.
There are those who think otherwise. But Schembri’s speech showed that the Bank of Canada remains more concerned about the 18% plunge in Canadian commodity prices this year than the 10% jump in the average national resale price of homes since 2013.
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