The Bank of Canada has reported that it sees no need to take action now to slow down the red hot Canadian housing market but it is standing ready to tighten mortgage lending rules if required.

The Bank went on to say the even though the Canadian economy is better after the recent recession, the degree of economic uncertainty remains high.

Canada's economy is projected to grow faster than other G7 countries in 2011 due to domestic growth, housing and government stimulus.

It is the fact that household debt is rising out of proportion to income that is worrying the Bank Of Canada.

The Bank has pledged to hold the current low interest rate unchanged  at 0.25 per cent until the end of June, 2011.

The Bank Of Canada will continue to monitor homeowners credit and together with government , regulators and the banks "take appropriate actions" if necessary.