May 16 (Reuters) -
* BANK OF CANADA GOVERNOR STEPHEN POLOZ SAYS RISK OF SHARP INCREASE IN LONG-TERM INTEREST RATES DRIVEN BY HIGHER GLOBAL RISK PREMIUMS IS MODERATE, BUT INCREASING
* BOC'S POLOZ SAYS CLOSELY MONITORING RISK THAT STRICTER MORTGAGE GUIDELINES ARE SHIFTING CONSUMERS TOWARDS PRIVATE LENDERS AND CREDIT UNIONS
* BOC'S POLOZ SAYS DECLINE IN GLOBAL BOND YIELDS SINCE THE START OF THE YEAR HAS LOWERED CANADIAN MORTGAGE RATES, SO HOUSEHOLD BORROWING IS LIKELY TO PICK UP AGAIN
* BOC'S POLOZ SAYS MPR NOTED THAT ESCALATION OF U.S-CHINA TRADE WAR REMAINS PRIMARY RISK, THAT IS STILL THE CASE TODAY
* BANK OF CANADA SENIOR DEPUTY GOVERNOR CAROLYN WILKINS SAYS LIKELIHOOD OF PROBLEMS WITH FRAGILE CORPORATE DEBT FUNDING "IS NOT OUR BASE CASE"
* BOC'S POLOZ SAYS POTENTIAL RISKS TO FINANCIAL SYSTEM "ENTERS INTO THE DISCUSSION" ON WHAT TO DO WITH INTEREST RATES
* BOC'S WILKINS: FRAGILITY OF CORPORATE DEBT FUNDING IS NOT A STABILITY ISSUE FOR THE GENERAL FINANCJAL SYSTEM
* BOC'S POLOZ: WEREN'T EXPECTING HOUSEHOLD SLOWDOWN IN Q4 TO BE SO SHARP
* BOC'S POLOZ: BOTH VANCOUVER AND TORONTO HOUSING MARKETS HAVE REALLY SOLID FUNDAMENTALS, DEMAND OUTSTRIPPING SUPPLY, HAVE ALL INGREDIENTS NEEDED TO RECREATE FROTH