Bank of Canada Deputy Governor Gravelle says in and interview:
- anecdotal evidence and data in the housing market indicate "a lot more investment activity, a lot more flipping"
- anecdotal evidence indicates fear of missing out in the housing market
- financial system discussions with federal counterparties in recent months have focused more on housing
- the bank would require additional tools in order to pursue a mandate that addresses housing activity
- the bank may have enough analysis done to discuss housing in the April MPR but there will be more focus in the May FSR
- the February jobs report reiforces the bank's belief that consumers and businesses have adapted better than expected to the lockdown
- early Q1 data gives the bank confidence there will be less chopiness in the economic recovery
- the Fed's new policy framework puts pressure on the boc to shift its own framework but it has a pretty flexible framework already
He also spoke earlier today:
