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Updated January 27th, 2024 at 09:36 IST

Canada's international student cap to ease rent pressure, says BoC Governor

The move comes as Canada aims to address a housing crisis exacerbated by a surge in newcomers.

Reported by: Business Desk
Reverse migration in Canada as living cost surges
Reverse migration in Canada as living cost surges | Image:X
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Canada's decision to limit the number of international students is expected to alleviate rent pressures, according to Bank of Canada Governor Tiff Macklem in an interview with the Canadian Press published on Friday. 

The move comes as Canada aims to address a housing crisis exacerbated by a surge in newcomers. 

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The new measures include a two-year cap on permits for international students and restrictions on post-graduation work permits.

Macklem noted, “You saw this week the government capping student visas. That, I think, will help take a bit of pressure off rents going forward.”

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The Bank of Canada has expressed concerns about high shelter prices, which could continue to exert upward pressure on inflation. 

Despite an overall annual inflation rate of 3.4 per cent in December, shelter-price inflation remained high at 7 per cent, driven by housing shortages, increased mortgage payments, and rental costs.

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(With Reuters Inputs)

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Published January 27th, 2024 at 09:36 IST

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