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Housing bubble unlikely to prompt a rate hike

Housing bubble fears have prompted some commentators to suggest that the Bank of Canada should hike interest rates before it's too late. But since the Bank doesn't typically target asset price inflation and, even if it did, doesn't even believe there is a problem with housing valuations, intervention seems highly unlikely. More importantly, given the dangerously high levels of household debt, raising interest rates now might do more harm than good.

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