The causes of the surge in real estate prices and the housing shortage in the North American country are multiple. The Governor of the Bank of Canada (BOC), Tiff Macklem, is tired of the authorities, like the media, blaming Canadians' growing housing difficulties on him.
He admits, “changes in policy rates have an effect on mortgage rates and demand in general. But monetary policy cannot address the underlying structural problems caused by insufficient housing supply” The governor not only kept the policy rate at 5% in January but announced that lowering rates would take time.