Dave McKay says limited supply is "exacerbating house price inflation"
The chief executive officer of RBC has urged the federal government to do more to address the country’s chronic housing shortage.
Dave McKay, CEO of RBC, said that while he acknowledged recent steps by Ottawa to cool Canada’s red-hot housing market, including the upcoming mortgage stress test rate hike, he still wants to see more action on the supply end of the equation.
“We support recent actions taken by regulators to adjust mortgage stress tests to take some pressure off the demand side of the equation, but we encourage policy-makers to also address the problems of limited supply, which are exacerbating house price inflation,” McKay told analysts, according to The Toronto Star.
McKay’s statement comes as RBC reported solid performance in the second quarter, posting pre-tax earnings of $5.1 billion – up 11% from a year ago.
“The strong momentum we’ve achieved in the first half of 2021 reflects our focused strategy to deliver exceptional experiences and create more value for clients,” McKay said. “RBC brings this to life through the combination of our powerful scale, strong market share growth, prudent risk management, and significant multi-year investments in talent and technology.”
