Bank of Canada’s Poloz Is Right to Be Worried

Jon Blogosphere, Economy, Market Commentary, Real Estate

Three possibilities come to mind. By Peter Diekmeyer, Canada, for Sprott Money: Bank of Canada governor Stephen Poloz cited numerous worries plaguing the economy during his speech to Toronto’s financial elites at the prestigious Canadian Club. However, the title of Poloz’s presentation, ‘Three things keeping me awake at night’ seemed odd, given positive recent Canadian employment, GDP and other data.
Poloz highlighted high personal debts, housing prices, cryptocurrencies and other causes for concern, along with actions that the BoC is taking to alleviate them. His implicit message was (as always) ‘We have things under control.’ But if that’s all true, then Canada’s central bank governor should be sleeping like a baby. So, what is really keeping Mr. Poloz up at night? Three possibilities come to mind.

This post was published at Wolf Street on Dec 17, 2017.