Bank of Canada sees risks from household debt, housing market imbalances – The Sydney Morning Herald

The Bank of Canada said elevated levels of household debt and imbalances in the housing market remain the primary risks to the country’s financial system, dangers that new government rules will mitigate over time.

“Overall, the risk of nationwide household financial stress combined with a sharp correction in house prices across the country remains ‘elevated,'” policy makers led by governor Stephen Poloz said in their semi-annual Financial System Review. “Since the June FSR, the likelihood of this risk materialising has increased modestly as a result of weaker economic fundamentals.”