BOC's Poloz: Still expects growth to pick up later this year
Comments from Poloz and Wilkins:
- Closely watching mortgage guidelines that may be shifting lending to private lenders and credit unions
- Household borrowing is likely to pick up again
The latest numbers have been excellent and (barring trade war risks) there is a real chance that growth is better than BOC forecasts.
- Canadian housing is benefiting from solid fundamentals
- Long-term rate risks 'moderate but increasing'
- Toronto-area housing appears to be stabilizing
- Risk of severe housing deceleration is falling
- We should see increasing evidence of growth returning to trend in H2
- Escalation of US-China trade war remains primary risk
- Risks on financial system 'enter into the discussion' on what to do with rates