Despite the Bank of Canada's announced rate cut, Finance Minister Joe Oliver has said he will not interfere with the housing market or force banks to lower their interest rates.
According to BNN, Oliver said in an emailed statement last Thursday that he does not intend to interfere with banks daily operations, and that he has no current plans to introduce new residential mortgage rules. With Oliver stating that he won’t force the banks lower their rates, banks may follow suit.
Since taking office, Oliver has taken a passive approach when it comes to mortgage rates and the housing market.
“I don’t think it’s the role of government to set interest rates or rates for mortgages,” Oliver said on Business News Network last June. “The rates are quite low and they’ve been coming down but a very small amount.”
Oliver has also said that he doesn't believe there is a major problem at this point, and that the government will continue to monitor the market while reducing the level of influence it will have moving forward.