Canadian housing market cooling, but still a risk - central bank

TORONTO, June 26 Wed Jun 26, 2013 1:53pm EDT

TORONTO, June 26 (Reuters) - The risk to the Canadian financial system from consumer indebtedness and the heated housing market has abated over the past year but is still present and merits monitoring, a Bank of Canada official said on Wednesday.

"We are seeing a moderation over the last year in both the buildup of household indebtedness and also the related imbalances in the housing market," said Bank of Canada Deputy Governor Timothy Lane in response to an audience question following a speech in Toronto.

"At the same time ... that's not to say that the risk has suddenly disappeared, and it's still a risk that we're watching very closely," he said.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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