BoC: FSR to remain in focus – AmpGFX

Analysts at Amplifying Global FX Capital explain that releasing on Thursday is the Bank of Canada’s semi-annual Financial Stability Review which is likely to steal the show. 

Key Quotes

“Six Canadian banks were downgraded by Moodys on 10 May; due to “Continued growth in Canadian consumer debt and elevated housing prices.”

“Canada’s largest non-bank mortgage lender, Home Group Capital, experienced a run on deposits and near failure in April.  Its share price remains depressed.”

“The BoC will have to address the risks in its housing market, household debt, and state of shadow-bank lenders.  Its comments may return focus to the Canadian financial system and economy, posing a risk for the CAD.”