The short answer is that the policy interest rate is our main monetary policy tool. We call it a blunt instrument. It affects everything. We can't target sectors. This makes the monetary policy more difficult, but also explains its effectiveness to some extent. We can't avoid raising interest rates. It affects the whole economy, everyone and every business. It has a predictable effect on demand and inflation.
The other tools are here in your hands. The government can take targeted measures, such as taxes, subsidies and budget measures for different sectors. At the Bank of Canada, we're happy to see all levels of government—municipal, provincial and federal—working together more closely to use different tools to ease the housing shortage. This will take time. Our high interest rates have reduced demand. However, since supply is still lacking, the sector continues to struggle. Alongside the supply aspect, measures can be taken by the various levels of government.