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

Key takeaways

"A significant slowing of the economy will occur."

"We are seeing clearer evidence economy is slowing."

"Next time the bank raises rates, it could be another larger-than-normal hike, might be a normal-sized one."

"It was appropriate to slow the pace of increase in our policy rates from very big steps to a big step."

Market reaction

The loonie manages to stay resilient against the weakening dollar following these remarks and the USD/CAD pair was last seen losing 0.4% on the day at 1.3552.