BOC minutes: Agreed the likelihood that mon pol was sufficiently restrictive had increased

  • Agreed that risks to the inflation outlook remained and it might still be necessary to hike
  • Expressed concern that shelter price inflation could remain elevated, which could make it more-difficult to return inflation to 2%
  • Felt and significant and sustained increase in new home construction would be needed to resolve long-standing structural shortage in supply
  • Agreed mon pol couldn’t solve housing supply problems
  • Considerable uncertainty surrounding the outlook for inflation

Housing in Canada is going to remain a hot issue for many years to come.

This article was written by Adam Button at www.forexlive.com. Source