Poloz forced to admit responsibility in driving up home prices at Senate testimony

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Bank of Canada Governor Stephen Poloz admits in testimony before the Senate Committee on Banking, Trade, and Commerce that it is the Bank of Canada's low rates, and not China, that is primarily responsible for inflated housing prices. In refreshing and remarkably direct questioning on October 19, 2016, Committee Chairman David Tkachuk asks, "aren't we at fault for the ease of people getting into a house, and it's driving the prices up?" The central bank chief's answer surprised me. He says it is indeed true.

Senator Tkachuk sums up the Governor's short answer succinctly with "your fault!".

 

I will be talking more about the Bank of Canada Governor's appearance before the committee in my weekly economic commentary and discussion with Kirk Lapointe on Roundhouse Radio. My full length interview is now available here where I explain how the Bank of Canada appears to be on the road to undoing any impact BC foreign property transfer tax may have in restraining home price inflation.

If you want to watch the entire testimony, click here for the Senate of Canada replay.

 

 

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