June 29, 2012 / 3:19 PM / 6 years ago

Ottawa says mortgage rules may dampen growth

OTTAWA (Reuters) - Canadian Finance Minister Jim Flaherty acknowledged on Friday that the recent tightening of mortgage rules may dampen economic growth in the country, but he said the government prefers to take that risk over allowing a housing bubble to develop.

“I realize it may have some dampening effect on the economy and I realize it may have some dampening effect in the residential real estate market. We’re prepared to take that risk, quite frankly, because of the greater risk of the development over time of a housing bubble,” Flaherty told reporters on a conference call from Ireland.

Reporting By Louise Egan; Editing by Jeffrey Hodgson

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