“With house prices to income levels running 35% above historic norms, Mark Carney, had some words of advice to heavily indebted households, telling them to use “prudence and caution” because borrowing costs can only go up.”
Source – Financial Post – Canada 24thApril 2012
Former Governor of the Bank of Canada and now Governor of the Bank of England, Carney, more recently made it plain that he does not see interest rate policy as a means of controlling House Prices over here. Given that back in Canada Vancouver prices are now reportedly at levels approaching those in Hong Kong you have to question whether or not Central Bankers in general and this one in particular have given up on any hope of preventing the perennial Booms and Busts that have come to plague housing markets across large swathes of the developed world.
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