According to the chief of the Royal Bank of Canada, he is not moved and apprehensive that the lender’s mortgage books could be damaged as a result of an increase in interest rates.
The CEO of RBC Dave McKay also made mention to investors that RBC is looking at having increased interest rates included in its lending conditions and standard. Additional to that, he said that the main worrying problem, in this case, is the increasing rate of unemployment.
In his address, he also spoke of the effect that the recent changes in government policy have over buyers that are purchasing homes for the first time in the real estate market. The housing market will hold up even though there is tighter lending condition because of demand.