Macklem Q&A: We have been surprised by the strength of the housing rebound

Author: Adam Button | Category: Central Banks

Comments from Macklem

Macklem
  • We're seeing a lot of strength in single-family homes
  • We're seeing some signs of excess exuberance but it's not like 2016-2017
  • We will be watching housing closely, we're aware that prices could get stretched and certainly that's a risk we're watching
  • I'm not recommending new measures on housing right now
  • To some extent, the rise in interest rates reflects the success of fiscal and monetary policy
  • Inflation expectations have moved back up to 'more normal' levels
  • The economy will be restructuring even as it's rebounding, it's going to take a considerable amount of time to get a recovery
  • As we get confidence in the strength of the recovery we will be adjusting QE
  • Ending QE is 'some ways off'
  • Yesterday's revisions to core CPI didn't affect our view on inflation
  • Bitcoin doesn't have features of a currency
  • Achieving full employment is an essential part of our inflation mandate
There were some points in his speech that I would have liked to hear questions on. he talked about the 4th industrial revolution, which is automation and digitization and he sounded very downbeat on long-term inflation because of that.

Invest in yourself. See our forex education hub.
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose