Analysis-Rising rates to cool Ontario housing market more than pre-election promises

With an election looming, Canada's province of Ontario is moving to rein in surging home prices with populist measures like a bigger foreign-buyer tax, but economists warn rising interest rates are likely to do most of the work. Toronto's average selling price dropped 2.6% in March from February, data showed on Tuesday, and annual gains slowed. “The higher rates will douse the flames somewhat,” said Sal Guatieri, a senior economist at BMO Capital Markets.