Bank of Canada (BoC) Governor Tiff Macklem responded to questions from the press following the bank's decision to raise the policy rate by 50 basis points to 3.75%.

Key takeaways

"We do expect rates will have to go up further, we will determine the pace depending on developments."

"We cannot rely on global developments to bring down inflation in Canada."

"We don't expect a severe economic contraction."

Market reaction

USD/CAD continues to trade in negative territory following the press conference and was last seen losing 0.35% on the day at 1.3560.