The Bank has been clear that high household debt, currently at around 178 per cent of disposable income, is our number one domestic financial vulnerability. Historically low borrowing costs obviously contributed. At the same time, other factors—housing supply constraints, strong interest among offshore investors—contributed to higher house prices and bigger mortgages. People here in Vancouver can relate to that.
A safe and efficient financial system is essential to Canada's economic well-being. The Bank of Canada works with other government agencies, as well as market participants, to promote the safe and efficient functioning of the financial system. Capital markets are a key component of that system.