The Limited Times

Now you can see non-English news...

Why the housing crisis is getting worse in Canada

2024-02-23T06:14:26.750Z

Highlights: 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.


DECRYPTION - The causes of the surge in real estate prices and the housing shortage in the North American country are multiple.


To Montreal

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.

Yes, 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.

In order to fight inflation, which reached 8% in June 2022, Tiff Macklem, like almost all central bank governors around the world, carried out a sharp increase in interest rates.

From 0.25% in January 2022, they rose to 5% in July 2023 and have since stabilized.

Economic players hoped that the year 2024 would mark the signal for a rapid drop in rates.

The governor not only kept the policy rate at 5% in January but announced that lowering rates would take time.

inflation

This article is reserved for subscribers.

You have 82% left to discover.

Flash sale

-70% on digital subscription

I ENJOY IT

Already subscribed?

Log in

Source: lefigaro

All news articles on 2024-02-23

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.