Interest rates unable to 'fine-tune' affordability: chief economist

One chief economist stresses the importance of independent monetary policy following criticism of the Bank of Canada.

Pedro Antunes, the chief economist at the Conference Board of Canada, said in an interview with BNN Bloomberg Tuesday that the Bank of Canada’s high-interest rate policy has received criticism from policymakers and politicians. 

“We do still need to consider that monetary policy needs to stay independent,” he said. Antunes added that monetary policy is a “very broad tool” which is unable to “fine-tune things like affordability or inequality.” 

Antunes’ comments come after remarks from Bank of Canada Governor Tiff Macklem that outlined the limits of monetary policy, saying the central bank is unable to address issues like housing affordability through interest rates.