April 28, 2015

“We don’t believe we’re in a bubble,” Bank of Canada Governor Stephen Poloz

Interesting. Please refer to my previous post to see what kind of soothing statements they were saying about the US housing bubble in 2006.

Source: Globe and Mail

The Bank of Canada’s top brass assured a parliamentary committee that Canada’s bloated housing market has not become a risky asset bubble, despite the central bank’s own calculation that house prices nationwide are roughly 20 per cent overvalued.

“We don’t believe we’re in a bubble,” Bank of Canada Governor Stephen Poloz said in testimony Tuesday to the House of Commons Standing Committee on Finance. He said Canada’s long-running boom in the housing market hasn’t been underpinned by the kind of rampant speculative buying that is the hallmark of an asset bubble.