The Globe and Mail reports in its Wednesday, Feb. 7, edition that monetary policy cannot solve Canada's housing affordability problem or boost the country's longer-term economic growth prospects, Bank of Canada Governor Tiff Macklem said Tuesday. The Globe's Mark Rendell writes that Mr. Macklem said the central bank's aggressive interest-rate hikes over the past two years have pushed up mortgage payments for many homeowners. However, he argued that shelter inflation -- now the biggest driver of consumer price index growth -- is primarily the result of long-standing imbalances in the housing market. Mr. Macklem said, "Housing affordability is a significant problem in Canada -- but not one that can be fixed by raising or lowering interest rates." He added: "Housing supply has fallen short of housing demand for many years. There are many reasons why: zoning restrictions, delays and uncertainties in the approval processes, and shortages of skilled workers. None of these are things monetary policy can address." Toronto-Dominion Bank senior macro strategist Robert Both says Mr. Macklem's comment suggests that the path back to the BOC's 2-per-cent inflation target "is likely to be slow and risks remain."