BoC: Semi-annual Financial System Review (FSR) to remain in limelight – RBC CM

The BoC’s semi-annual Financial System Review (FSR) is due today and will be keenly watched by investors suggest analysts at RBC Capital Markets.

Key Quotes

“The focus of the FSR is expected to remain on housing and household debt, especially with the BoC commenting that macroprudential measures had “yet to have a substantial cooling effect on housing markets” in its latest rate statement. Alternative mortgage lending may also be in the spotlight given recent developments in the sector. If questioned on the subject, the BoC will reiterate its view that monetary policy is too blunt and far-reaching a tool for the job of cooling housing and that macro-prudential measures are best-suited.’’