Canada: BoC’s FSR and housing data in focus - TDS

All eyes will be on the Bank of Canada’s Financial System Review, which will be published at 10:30 ET and followed by a press conference with Governor Poloz at 11:15 ET suggests the research team at TDS.

Key Quotes

“While we expect the press conference to be the highlight, we will look to the report for any change to the Bank’s projected probability of a sharp correction in housing prices (currently low) and an update on household imbalances.”

“Turning to the data, May housing starts will be released at 8:15 and the market looks for a deceleration to a 202k pace from 213k in April. TD is above the market at 225k, though today’s building permit data introduces some downside risk. New house prices for April will be released shortly afterward and are expected by the market to rise by 0.2% m/m.”