The BoC head instead pointed to other aggravating factors, like the lack of housing supply, exacerbated by "zoning restrictions, delays and uncertainties in the approval processes, and shortages of skilled workers."Don't leave it to interest rates to fix Canada's ongoing housing affordability crisis, said Bank of Canada Governor Tiff Macklem during a speech at the Montreal Council of Foreign Relations on Tuesday.
Macklem did acknowledge that "monetary policy has a big effect on housing" in this regard, but said that it can't "address long-running structural problems on the supply side." Shelter prices are now the biggest contributor to above-target inflation, Macklem said, noting that this is partly a reflection of the rise in mortgage costs. Although inflation in most other durable and non-durable goods prices has come down, the bank believes more time is needed to "ease the remaining price pressures in these goods and services."
Source: Loan Digest (loandigest.net)
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