BoC Continues Housing Affordability Supply Angle

BoC's Macklem offers a similar stance on housing affordability being not down to monetary policy.

• Q: When you talk about the importance of adding housing supply, how worried are you about keeping interest rates high discouraging construction?
• A: We certainly do here from developers that increases in interest rates are impacting their profitability and delaying certain projects. But very clear in data that effects of interest rates are much bigger on demand than those on supply. The solution to housing affordability is to get supply up.

• Q: Why do you feel the need to push this message on housing affordability?
• A: Two reasons: i) As inflation has come down overall, the part that’s left is shelter and it's much more prominent. ii) It’s the question that we’re getting from Canadians, elected officials, businesses. We’re really responding to the questions that we’re getting.