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