Morneau doesn’t foresee more measures to rein in mortgage risks

Finance Minister Bill Morneau got some ideas for his next federal budget today from private sector economists.

He sat down with the experts in Toronto, something federal finance ministers routinely do.

One topic the finance minister was asked about by journalists after the meeting was whether Canadians can expect more measures to influence the housing market.

Last year, the new government implemented a number of changes to mortgage regulations aimed at reining in risk. But there are no additional actions planned on that front at the moment, Morneau said.

“We continue to monitor the housing market to make sure the risks are appropriate for the market,” he said.

“We don’t have any measures under consideration at this stage, but we will continue to monitor to ensure the housing market is stable and that people are protected in their important investment.”

Trump’s impact

Another issue on the agenda was how Canada’s economy will be affected by the presidency of Donald Trump, who will be inaugurated next week.

Morneau was cagey on the subject, noting that the government has yet to have any formal discussions with an administration that is not yet in power. But when the time comes, he says the focus will be on how the two countries “can continue and enhance our trade relationship.”

CIBC’s chief economist Avery Shenfeld suggested the Canadian economic outlook has improved somewhat since the fall, and that needs to be factored into the government’s projections.

But he says that assessment won’t account for any potential fallout for Canada from Trump’s promised economic policies, which include cutting corporate taxes and a border tax on imports.

Craig Alexander, the chief economist of the Conference Board of Canada, says Trump’s proposals create enough uncertainty that some kind of fiscal prudence would be appropriate in this year’s budget.

Article source: http://www.cbc.ca/news/business/morneau-economy-budget-1.3934136?cmp=rss