BoC's Lane: Rates are still quite low relative to what we think of as neutral level
|Timothy Lane, Deputy Governor of the Bank of Canada, is responding to questions, with key headlines (via Reuters) found below:
- Each decision is a live decision
- What we were seeing over the summer and two weeks ago, data were looking quite favorable for Canadian economy
- GDP from q2 suggested growth was rather strong; that's what data dependence looks like
- Where we are now, rates are still quite low relative to what we think of as neutral level
- Households are way more indebted than they were a few years ago; we have to watch all these changes, along with c$
- As c$ is strengthening, we're watching closely and will be taking that into account strongly
- Household debt is an issue that's been continuing to play out, it's really linked to strength of housing markets
- Consumer indebtedness is a big vulnerability for Canada's financial system, hopeful this will moderate over time
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