Published • loading... • Updated
Canada is not close to restoring housing affordability, says central bank
Carolyn Rogers said the Bank of Canada can cool demand, but 37,738 August home sales show affordability will require more supply and broader policy action.
- 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.
Insights by Ground AI
22 Articles
22 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
Read Full Article
Coverage Details
Total News Sources22
Leaning Left5Leaning Right2Center13Last UpdatedBias Distribution65% Center
Bias Distribution
- 65% of the sources are Center
65% Center
L 25%
C 65%
Factuality
To view factuality data please Upgrade to Premium
