In a bit of a surprise, (Carney) said Tuesday he is not as yet convinced the recent cooling in housing activity in Canada, along with a slowdown in credit accumulation, represent a fundamental shift, indicating he remains concerned about the downside risk of keeping rates low for a very long time.
A Canadian Institute of Chartered Accountants survey conducted earlier this year found almost half of respondents worrying about affording to make mortgage payments should rates rise significantly.
On Monday, Finance Minister Jim Flaherty said he was pleased housing was moderating and that Canadians were starting to pay off debt, a shift in the credit and mortgage market he attributed in part to his decision to tighten borrowing rules in July.
Carney said, however: "It is too early ... to determine whether the moderation in housing activity and credit will be sustained."
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