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

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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.
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