BoC's Macklem: A significant slowing of the economy will occur

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.