The Globe and Mail reports in its Friday edition that Bank of Canada senior deputy governor Carolyn Rogers says monetary policy-makers are struggling to find new tools and pathways to address persistent housing affordability challenges. A Canadian Press dispatch to The Globe reports that one of the reasons housing is such a thorny issue to tackle is because of the outsized role it now plays in Canada's economy relative to other jurisdictions. In 2000, residential investment accounted for 4.3 per cent of Canada's GDP, while business investment in equipment and machinery sat at 8.3 per cent. Those shares are now largely reversed. Recent declines in home prices have provided some relief for buyers. However, long-term declines can impact household wealth and the economy, potentially slowing new construction. Efforts to address instability in the housing market with measures like the mortgage stress test have also historically raised barriers to buying a home, Ms. Rogers said, even if those regulations helped maintain stability. Ms. Rogers said the BOC'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.