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Royal Bank of Canada’s chief executive says the Toronto and Vancouver housing markets are at the “point of strain” and call for a “multi-faceted solution, which addresses supply constraints and speculative forces.”

Dave McKay, RBC’s president and chief executive, welcomed any effort by the municipal, provincial and federal governments “to co-ordinate their interventions, and to do so reasonably quickly,” in a speech delivered at the lender’s annual meeting of shareholders in Toronto on Thursday.

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He also called for any solution to be “mindful of the rate environment, which can be a moderating force.”

“And while we remain confident in the strength of our mortgage book, we believe that if this issue goes unchecked, it could drag on consumer spending, locking up too much capital unproductively, and potentially becoming an inhibitor to Canada’s future economic growth,” McKay told shareholders.