- Stephen Poloz, Bank of Canada Governor
Canada's building permits rose 0.7% to C$7.53 billion in October from the preceding month, following a revised 12.5% surge in September, Statistics Canada data showed. Economists, however, had expected a 2.1% advance. Meanwhile, Canada's housing starts rebounded in November in line with expectations following the slowdown a month earlier, adding to signs low borrowing costs bolstered growth in the closely watch market. Data from the Canada Mortgage and Housing Corp revealed the seasonally adjusted annualized rate of housing starts increased to 195,620 units in November, up from 183,659 in October. Meanwhile, Canada's existing home sales climbed 0.7% during the same month, the Canadian Real Estate Association said. Canadian policy makers have been raising concerns over the country's continuously expanding residential sector, particularly in light of low interest rates and rising debt levels. In the December statement, the Bank of Canada upgraded its analysis of household imbalances, stressing that they continue to impact the Canadian economy and pose a "significant risk" to the country's financial stability. The Canadian Dollar weakened to the lowest level in five years versus the US Dollar on Monday, as traders pushed the Greenback higher despite poor Labor Market Conditions Index. The Loonie lost almost 0.50% Monday, to trade at $1.1484 for the first time since July of 2009.
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