Money
BoC's Rogers says interest rates are too blunt to fix Canada's housing affordability trap
In a Victoria speech, Senior Deputy Governor Carolyn Rogers argued monetary policy cannot build homes or rezone land, as Capital Economics sees only modest hikes and the next rate decision lands Oct. 28.
Published: October 3, 2026 · 1 min read
The Hub reported that the overnight rate remains at 2.25% and that Capital Economics, in a note published the day before Rogers spoke, forecasts only two quarter-point hikes starting next year to 2.75%, versus markets pricing roughly 1.25 percentage points of increases by end-2027. The Bank will publish updated economic and inflation forecasts with its next rate decision on Oct. 28. Rogers said the Bank's best contribution remains low, stable inflation, while lasting affordability still needs more supply, better planning and incentives that do not add demand to a short market. Not investment advice. Sources: Bank of Canada; The Hub.
Sources
- Bank of Canada · other
- The Hub · other
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