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Flaherty’s ‘Helping Hand’ May Keep Carney on Hold

Canadian Finance Minister Jim Flaherty’s next budget may give a “helping hand” to the country’s central bank with rules aimed at curbing record consumer lending, according to Nomura Securities International.

The fiscal plan, which is traditionally presented in February or March, may cut home-equity loan limits or shorten the maximum amortization period for government-insured mortgages to 30 years from 35 years, said Charles St-Arnaud, an economist and foreign-exchange strategist in New York. The rules would discourage consumer borrowing while allowing the central bank to refrain from raising interest rates.