Schembri sounds like he's setting up a drop in $4B/week in QE
- Recovery is not well underway until we have seen ourselves through much of the pandemic
- April outlook will reassess potential growth in global and Canadian economy
- There is a combination of unusual factors affecting the housing market but they can take a life of their own
- Our concern is that if house prices were to continue at this pace and we see more evidence of speculation, then we will be concerned
- We've seen more signs of house price exuberance than we did even a month ago
- Assessment of house prices will be reported in May's Financial System Review
- Our major contribution will be monitoring them
The comments on housing and monitoring it suggest they will leave it up to the government to curb housing speculation, if needed. It won't be via rate hikes.
