Work

Conduct of Monetary Policy under Housing Market Imbalances

Year: 2026

Type: article

Abstract: Canadian housing imbalances have elevated shelter inflation as a driver of CPI, fueled by high house prices, mortgage costs, rents, supply constraints, and leverage. This note uses a model with housing supply and extrapolative expectations to assess whether monetary policy should incorporate or look through shelter inflation under demand and supply shocks.

Source: Bank of Canada Research

DOI: 10.34989/sap-2026-53

Authors: Enkhbold, Amina, Kabaca, Serdar

Institutions: Bank of England, Bank of Canada

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W7222740123

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