We look at financial markets very closely, and the price of assets in these markets. We also look at the real estate market. My colleague Toni Gravelle gave a speech this week specifically on the topic of households and businesses.
We all noticed a strong rebound in the real estate market this summer. We believe this was largely because of suppressed demand, by which I mean that there were people who wanted to buy a house, but could not. So when things began to open up again, everyone jumped on the bandwagon.
What we are seeing at the moment in these markets is not exactly what happened in Vancouver and elsewhere in 2016. There is not much speculation yet, but we need to continue to monitor it. It's too early in the recovery phase to really know. We're going to keep a close eye on it.
As for assets like the stock market or the fixed income market, it is unwise for a banker working at the Bank of Canada to comment. I can say that when we look at what's happening, it's normal for prices to increase when the interest rate goes down. It's part of the monetary policy transmission mechanism.
I am not commenting here on prices or on the fact that they appear normal and fair. It's up to the financial market to decide.