Following the Bank of Canada's (BOC) decision to hike the policy rate by 100 basis points to 2.5% in July, Governor Tiff Macklem is delivering his remarks on the policy outlook and responding to questions from the press.

Key takeaways

"Front-loading interest rate response will help cool domestic inflationary pressures."

"100-bp hike reflects concern that the risk that high inflation could become entrenched has gone up."

"Our aim is to get rates to the top-end or slightly above neutral range quickly."

"Economic slowdown is needed, there's lots of room to reduce job vacancies without materially reducing employment."

Market reaction

USD/CAD trades deep in negative territory following these comments and was last seen losing 0.5% on the day at 1.2955.