BoC says the government - NOT the free market - is best way to address housing

[mentalfloss]

The market's just not ready.


Housing and debt risks best addressed by government, rates blunt tool: Poloz

Bank of Canada governor Stephen Poloz says risks from household debt and the housing market will be better addressed by the government's recent policy moves than by adjusting interest rates.

In a speech in Vancouver, the head of Canada's central bank says adjusting interest rates is a "very blunt tool" that has widespread effects.

"Our view is that these so-called macroprudential policies are best placed to deal with threats to financial stability because they can be designed to target specific financial vulnerabilities," Poloz said, according to a text of his speech released in Ottawa.

"Given all the work done to strengthen the global financial system over the past few years, it makes even more sense to separate monetary policy from efforts to stabilize the financial system."

Housing and debt risks best addressed by government, rates blunt tool: Poloz - Business - CBC News

 

[IdRatherBeSkiing]

I believe the article is talking about tools to control the economy referring to interest rates as a blunt forth. No comment except by the OP about free market vs government.

 

[mentalfloss]

One of those tools is targeted, government spending - because the tools of the market itself (interest rates, debt, amortisation) are not good enough.


Again, for the people who apparently care about the economy on this supposedly conservative, right wing forum:


Poloz Gets No Relief From Trudeau in Infrastructure Plan - Bloomberg

Canada’s stimulus ball is back in Stephen Poloz’s court.

Finance Minister Bill Morneau’s fiscal update Tuesday provided no new immediate spending measures, potentially leaving the central bank governor alone in combating any further weakening of Canada’s economy.

Poloz has touted the need for a better mix between monetary and fiscal policy, and fresh government spending could have relieved some of the pressure for another interest-rate cut from the Bank of Canada.

 

[petros]

TD raises mortgage prime rate by 0.15% in wake of Ottawa's new rules

TD raises mortgage prime rate by 0.15% in wake of Ottawa's new rules - Article - BNN

 

[mentalfloss]

Proof that regulation works.

Thanks petros!

 

[petros]

Is it?

 

[Angstrom]

Everyone stoped having kids. Is that by government design?