13 Jan 2014
Flash: BoC on the back foot? – Rabobank
FXstreet.com (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank warned, as she has warned before, one clear constraint to further policy action from the BoC is the near-record levels of household debt and more…
Key Quotes:
“Macro-prudential measures have been employed to tackle appetite for debt. In addition, the push higher in bond yields from their early May lows will have had some impact in tempering demand for mortgages”.
“Latest data suggest there has been a cooling in the property market. November’s new house index registered a weaker than expected 1.4% y/y rise, while December building permits and housing starts also came in below forecasts”.
“Further evidence of softening the housing market could increase talk that the BoC could ease again. We expect that the BoC will remain on the back foot through H1 2014 and we have revised up our USD/CAD forecast to 1.10 on a 3 mth view”.
Key Quotes:
“Macro-prudential measures have been employed to tackle appetite for debt. In addition, the push higher in bond yields from their early May lows will have had some impact in tempering demand for mortgages”.
“Latest data suggest there has been a cooling in the property market. November’s new house index registered a weaker than expected 1.4% y/y rise, while December building permits and housing starts also came in below forecasts”.
“Further evidence of softening the housing market could increase talk that the BoC could ease again. We expect that the BoC will remain on the back foot through H1 2014 and we have revised up our USD/CAD forecast to 1.10 on a 3 mth view”.