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.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services