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Canada is not close to restoring housing affordability, says central bank
Rogers said interest rates are too blunt to solve the problem, and that restoring affordability will require more supply and coordination across governments and builders.
- 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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20 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 Sources20
Leaning Left5Leaning Right1Center13Last UpdatedBias Distribution69% Center
Bias Distribution
- 69% of the sources are Center
69% Center
L 26%
C 69%
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