January 21, 1957 (22nd Parliament, 5th Session)

LIB

Walter Edward Harris (Minister of Finance and Receiver General; Leader of the Government in the House of Commons; Liberal Party House Leader)

Liberal

Hon. W. E. Harris (Minister of Finance):

The policy of the Bank of Canada with respect to term credit has been, for over a year I think, to restrict the growth of credit at the rate that it was then proceeding. This has been the policy since October, or a little earlier, in 1955. That does not mean that it is a straight curtailment of credit. It is a curtailment of the rate of growth at that time. I think that we have been successful in restraining that growth to the point where credit is still growing though at a more modest rate. Therefore, I do not see any particular conflict.

Topic:   POSSIBLE CONFLICT BETWEEN CREDIT RESTRICTIONS AND HOUSING LOANS
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