As you know, we became particularly concerned about this issue when we noticed that virtually all of the increase in housing loan approvals in the past year was going to investors, not to aspiring owner-occupiers. At the same time, the building approvals data showed that monthly approvals to build multi-unit developments, i.e.
When financial tensions ease as the pandemic runs its course, these extra liquidity demands will dissipate, and the Bank’s balance sheet expansion can reverse over time. The Bank stands ready to augment the scale of any of its programs should market conditions warrant it.