Bank of Canada identifies ‘prolonged weakness’ in commodity prices as a key risk
Latest financial system review suggests the resulting stress would be ‘manageable’
The Bank of Canada added the potential for "prolonged weakness" in commodity prices to its list of "key risks" to the country's economy today (December 15), in its latest financial system review.
According to the bank, the most important risk remains a period of financial stress for households leading to a "sharp correction in house prices", it said. Other risks include an abrupt increase in global risk premiums, and stress spreading from China and other emerging markets.
It has categorised the
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