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Canada is not close to restoring housing affordability, says central bank
Carolyn Rogers said higher or lower rates cannot fix a housing shortage without slowing construction or boosting demand, and urged broader policy changes.
- On Thursday, Senior Deputy Governor Carolyn Rogers said Canada is on the right track addressing housing affordability but cautioned "we have a way to go and it will take time."
- Rogers explained that the Bank's benchmark overnight rate is a "blunt tool" because lower rates fuel rising prices while higher borrowing costs box out prospective buyers.
- "It feels a bit like a trap," she said, noting that monetary policy cannot address supply constraints like permitting. Restoring affordability requires better planning and infrastructure instead.
- The BoC must better explain these trade-offs to Canadians, Rogers said, confirming the central bank will not directly target house prices to avoid imposing broader economic costs.
- Long-Term affordability requires a mix of policies to boost supply and reduce economic reliance on rising home values, as Rogers reiterated that "low, stable and predictable inflation" remains the best salve.
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14 Articles
14 Articles
The Toronto Star+10 Reposted by 10 other sources
Bank of Canada’s key rate ‘too blunt’ to fix housing unaffordability: official
A top official at the Bank of Canada says monetary policymakers are struggling to find new tools and pathways to address persistent housing affordability challenges.
·Toronto, Canada
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Coverage Details
Total News Sources14
Leaning Left5Leaning Right0Center9Last UpdatedBias Distribution64% Center
Bias Distribution
- 64% of the sources are Center
64% Center
L 36%
C 64%
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