BoC's Poloz: Escalation of U.S-China trade war remains primary risk

Eren Sengezer FXStreet

While responding to questions from the press on the Bank of Canada's Financial Review Summary - 2019, which was published earlier in the day, Governor Stephen Poloz said that the escalation of the U.S.-China trade war remained as the primary risk.

Key quotes (via Reuters)

Risk of sharp increase in long-term interest rates driven by higher global risk premiums is moderate, but uncreasing.
Closely monitoring risk that stricter mortgage guidelines are shifting consumers towards private lenders and credit unions.
Decline in global bond yields since the start of the year has lowered Canadian mortgage rates, so household borrowing is likely to pick up again.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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