Those old fogeys at the International Monetary Fund are raising their eyebrows at consumer debt in Canada again.
“Developments on the housing front require increased vigilance, and consideration may need to be given to additional prudential measures to prevent a further buildup in household debt,” the Washington-based IMF says in its latest economic outlook for the Western Hemisphere.
Clearly they don’t understand that it’s different here. Tell ’em Mr. Flaherty.
For his part, Mr. Flaherty says he’s satisfied he’s done enough to curb the accumulation of mortgage debt.
The finance minister said in New York on Wednesday that he would need to see “clear evidence of a bubble in the housing market in Canada, which we have not seen,” according to a report by Bloomberg News. Mr. Flaherty defined a bubble as “dramatic surges in prices in some part of the country.” He also said the measures he took in January have led to “some softening in the Canadian housing market.”