Bank of Canada’s Wilkins says soft landing still likely for housing sector

Senior deputy governor Carolyn Wilkins tells the Globe that ‘housing market and household debt are going to evolve in a constructive way’

The Bank of Canada’s number-two policy maker said the central bank remains confident that Canada’s housing sector will achieve a soft landing, just days after a leading global economic body warned of rising risks in overheated pockets of the Canadian market.

Earlier this week, the Paris-based Organization for Economic Co-operation and Development warned in its twice-yearly global Economic Outlook that the risk of “a sharp market correction” is rising in Toronto, Canada’s biggest regional housing market. It pointed to a glut of new and unoccupied housing units in the city as a danger sign. It also noted that Canada’s new-home construction starts, which have been trending above a 200,000 annualized rate in recent months, “are running at the higher end of demographic requirements.”

“Our base case, and one that we outlined in the [October Monetary Policy Report], is that the housing market and household debt are going to evolve in a constructive way,” said Carolyn Wilkins, senior deputy governor at the Bank of Canada, in an exclusive interview with The Globe and Mail. “We don’t see the risk as part of our base case at al

The Globe and Mail, 13 Nov 2015

3 responses to “Bank of Canada’s Wilkins says soft landing still likely for housing sector

  1. Remember when Carney was all about household debt “constructively evolving” back in 2011? Now we get more of the same. I’m not sure what has “evolved” to warrant a moving of the goalposts over four years

  2. Canada Has Fallen Far On The Best-Countries-To-Do-Business List
    Daniel Tencer – Huffington Post Canada – November 17, 2015

    Canada Falling Behind
    The Harper government often extolled the virtues of its pro-business agenda, but the World Bank’s latest survey suggests the country became a worse place to do business over the past half decade, at least comparatively.
    Granted, Canada’s ranking of 14th place is two spots better than last year — but it’s seven spots below where Canada ranked as recently as the 2011 survey.
    It’s as much a case of other countries doing better as it is a case of Canada doing worse. On many metrics, Canada hasn’t declined — others have pulled ahead.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s