The governor of the Bank of Canada spoke to journalists this morning to give reassuring words on the economy after yesterday’s statement about overvaluation in the housing market. Stephen Poloz said that they are not expecting a housing crisis with the likelihood of a sharp drop in property prices low. He said that there would be a problem if there was a spike in unemployment or interest rates which would make mortgage payments unaffordable for some, but he isn’t expecting that scenario either. He said it was natural to be concerned about negatives given the financial crisis we have been through.
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