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.
"Front-loading rate increases now helps avoid the need for even higher interest rates down the road."
"Front-loaded tightening cycles tend to be followed by softer landings."
"100-basis-point rate increase is very unusual and reflects unusual economic circumstances of inflation at nearly 8%."
"Strain of higher interest rates in short term will get us to the other side of this difficult period and back to normal."
"Goal is to get inflation back to 2% with a soft landing for the economy; quick rate hikes prevent inflation from becoming entrenched."
"Over half of components in the Consumer Price Index are rising above 5%."
"We are projecting a soft landing, but the path to that has narrowed because of elevated and persistent inflation."
"Credibility of the bank's inflation target is being tested but remains credible overall."
USD/CAD continues to push lower on these comments and was last seen losing 0.6% on the day at 1.2944.
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