Bank of Canada Governor Tiff Macklem said Tuesday his focus remains on the target for headline inflation during a time of elevated housing prices, and reiterated discussion of cutting borrowing costs will emerge only when it's clear price stability is being restored.

"Our target is for total CPI inflation," he said at a press conference following a speech in Montreal, adding that housing costs have been an important part of price gains. The Bank's forecast accounts for both shelter costs and a gradual moderation of overall inflation, he said. (See: MNI INTERVIEW: Last Thing BOC Wants Is Cut And U-Turn- Stillo)