September 18, 2017 / 7:05 PM / 10 months ago

BRIEF-Bank of Canada's lane: each rate decision is a live decision

Sept 18 (Reuters) -

* Bank of Canada’s Lane: each decision is a live decision

* BoC’s Lane: what we were seeing over the summer and two weeks ago, data were looking quite favorable for Canadian economy

* BoC’s Lane: GDP from Q2 suggested growth was rather strong; that’s what data dependence looks like

* BoC’s Lane: where we are now, rates are still quite low relative to what we think of as neutral level

* BoC’s Lane: households are way more indebted than the were a few years ago; we have to watch all these changes, along with C$

* BoC’s Lane: as C$ is strengthening, we’re watching closely and will be taking that into account strongly

* BoC’s Lane: household debt is an issue that’s been continuing to play out, it’s really linked to strength of housing markets

* BoC’s Lane: consumer indebtedness is a big vulnerability for Canada’s financial system, hopeful this will moderate over time

* BoC’s Lane: Canadian economy seems to be on better track, should mean incomes are rising to help consumers afford debt have taken on

* Boc’s lane: any economic model has some usefulness, some limitations

* BoC’s Lane: level of interest rates is clearly one factor in housing market strength

* BoC’s Lane: consumers should remember level of interest rates are exceptional, not likely to continue through length of mortgage

* BoC’s Lane: many Canadians have come to see double-digit house price increases as normal; it’s not and can’t continue

* Bank of Canada’s Lane: whether or not carbon tax affects competitiveness of trade depends on how it is designed Further coverage: (Reporting By Leah Schnurr)

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