As you know, last week the Monetary Committee decided to keep the interest rate unchanged, though it conveyed a different message than the one we conveyed in recent months. The message was changed because the data changed—in central banking jargon that is called data dependency.
The revival of housing activity is a reflection of the historically high level of affordability that is associated with the current record-low interest rates. Another important factor has been the rebound in consumer confidence, as many Canadians see their economic prospects brightening. But the housing rebound is also partly a matter of timing, rather than a permanent increase in housing demand.