The Bank of Canada says the economic recovery is on track despite sluggish output growth, but also warned there’s a high risk of inflation that could prove more persistent than expected.

They also said supply disruptions and price pressures are “proving more complicated, so there is some risk that there’s a bit more persistence than we previously thought.”

“As the recovery from the pandemic progresses, and major economies begin to remove exceptional monetary stimulus, the system will likely come under more pressure,”

It is reasonable to expect that when we they do reduce monetary stimulus, the first move will be to raise interest rates.

Higher interest rates will certainly have an impact on the price of houses.