TORONTO (Reuters) – Canadian Imperial Bank of commerce CEO Victor Dodig said on Thursday the Canadian government risks reigniting inflation with spending measures aimed at fixing an acute housing crisis.
Prime Minister Justin Trudeau has announced measures, including a C$6 billion Canada Housing Infrastructure Fund to accelerate the construction and upgrading of housing, to deal with housing shortages that have dented his Liberal government’s popularity.
More housing-related announcements are expected in the federal budget on April 16.
“I worry that some of the solutions that are being talked about and have been introduced in advance of the budget are a medium to longer term in nature,” Dodig told Reuters on the sidelines of the lender’s annual meeting, adding that the government has to be “very mindful” of its impact on inflation.
He said Ottawa should…
