"On Monday, Bank of Canada Governor Mark Carney warned that Canadians are "stretched" financially and "increasingly vulnerable to an adverse shock" such as interest rate hikes. Carney urged Canadians to be "prudent in their borrowing," and ensure that in the future they can service debts taken on today. He also called on banks to be more stringent in qualifying borrowers. The central bank halted the slow rise of its key lending rate in October after three incremental rate increases since July from a historic low. Last week, it maintained the interest rate at 1.0 percent as the economic recovery showed signs of faltering in the second half of the year, but Carney signaled that rates would eventually rise." Read more."Canada Urges 'Moderate' Monetary Policy" AFP, December 16, 2010.Image by Felixco, Inc / FreeDigitalPhotos.