The IMF forecasts the Canadian economy will grow 1.9% this year and 2.0% in 2013, compared to the BOC forecasts of 2.1% and 2.3%, respectively.
“Housing-related credit and household leverage have risen markedly…despite measures to limit mortgage growth,” the IMF said, noting recent measures announced by Canadian Finance Minister Jim Flaherty to tighten mortgage-finance rules. “If household leverage continues to rise, additional measures may need to be considered.”
Risk trades are losing ground as Spanish yields rise. USD/CAD up to 0.9765
