Canada's Housing Affordability Dilemma Tops Bank of Canada Agenda

Bank of Canada Governor Tiff Macklem discussed Canada's housing affordability dilemma in Victoria, where he first faced the issue as a public policy problem. He noted that housing affordability has followed him throughout his career and remains one of the country's most pressing issues.

Macklem highlighted the structural changes affecting the economy, including rapid technological advancements and shifting geopolitical dynamics. He also mentioned the recent energy shock, significant changes in trade policy, and a massive AI infrastructure buildout as factors contributing to the current economic landscape.

The Governor emphasized that while he sees upside risks to inflation, which has exceeded the 2% target for over five years, the economy is likely to show continued resilience. He pointed out that jobs are being added, and the six-and-a-half-year-long expansion continues.