Thank you kindly, Mr. Chair.
Thank you, Governor and Deputy Governor Ms. Wilkins.
I want to get back to the housing market. You've said that you are expecting a soft landing in the housing market. Back in December, you said that you estimated the overvaluation in the housing market to be in the order of 10% to 30%. There have been many estimates coming from other banks. I know that the Deutsche Bank reported that it was about 35% relative to income. The Economist said in January that it was at about 25%.
When we talk about a soft landing, it means that the overvaluation can actually be deflated slowly, to the point where we can actually have a more normal market. On the other side, the Bank of America said that Canada seems to be experiencing something like “a classic bubble”.
The question really is, if we have to have a soft landing, we really need to be outside of the bubble mode, don't we, in the sense that the bubble can actually explode if it's really something more...?
It's more of a situation where the bubble can deflate more slowly. Is your view more or less optimistic than the private sector's?