A top official at the Bank of Canada says monetary policymakers are struggling to find new tools and pathways to address persistent housing affordability challenges.

Senior deputy governor Carolyn Rogers is giving a speech in Victoria, B.C., today that lays out the complex interplay between housing, regulation, the economy and the Bank of Canada.

While lower home prices have offered buyers relief in some markets over recent years, Rogers says prolonged declines in value can hurt household wealth, investor confidence and the wider economy.

She says the central bank’s key interest rate is “too blunt” to fix housing affordability alone because lower rates fuel rising prices while higher borrowing costs box out prospective buyers.

Efforts to address instability in the housing market with measures like the mortgage stress test have also raised barriers to buying a home, Rogers says, even if those regulations helped maintain stability.

Rogers argues that the path to restore housing affordability needs a mix of policies to boost supply while reducing the economy’s reliance on perpetually rising home prices.

This report by The Canadian Press was first published Oct. 1, 2026.

Craig Lord, The Canadian Press