Live news: Bank of Canada says inflation staying high because businesses hiking prices too much
At least $1 trillion in investment is needed to achieve housing affordability in Canada, and the private sector has a key role to play, according to a new study by Canada Mortgage and Housing Corp.
The $1-trillion investment is estimated to be the cost of building the millions of homes needed to fix affordability, the national housing agency said on Oct. 3. It reported last month that Canada still needs 3.5 million more homes to close the affordability gap by 2030.
“That amount of money is so enormous that we really need the private sector involved,” deputy chief economist Aled ab Iorwerth said. “The government can’t do it alone.”
United States Federal Reserve Bank of Cleveland president Loretta Mester said she would support another interest-rate increase at the Fed’s next policy meeting if the economy is performing about the same as at the time of the September gathering.
“If the economy looks the way it did at the next meeting similar to the way it looked at our recent meeting, I would” support another rate increase, Mester told reporters on a conference call Tuesday.
Fed officials voted last month to leave the target range for their benchmark unchanged at 5.25 per cent to 5.5 per cent, a 22-year high. Projections published at the same time showed 12 out of 19 policymakers expected one more rate increase for this year, and fewer rate cuts in 2024 than previously anticipated.
Mester, who does not vote on monetary policy decisions this year, said on Monday that the U.S. central bank will likely need to raise rates once more this year and then hold them at higher levels for some time to get inflation back to its two per cent target.
However, Mester said the final decision will depend on how the economy evolves, pointing
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