The Bank of Canada is aware that its emergency pandemic policies are inflating house prices, and it’s going to keep an eye on the country’s heavily indebted households, but last week, its Governor made clear he plans to do nothing about it.
In essence, Tiff Macklem has said it’s the federal government’s job to worry about that, not the central Bank’s.
Tiff Macklem told a virtual audience at the Global Risk Institute that he means to keep the emergency measures ― rock-bottom interest rates, purchases of Canadian mortgages and government debt ― “in place for a long time.” And he made it clear that soaring house prices won’t change the Bank’s direction.
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