BOC's Macklem: High rates, slow growth will impact government spending

Bank of Canada (BoC) Governor Tiff Macklem commented earlier Tuesday that the central bank continues to assess whether monetary policy is sufficiently restrictive while not starting to talk about interest rate cuts.

Key quotes

"We held policy steady because monetary policy is working to cool the economy and relieve price pressures."
"We continue to assess whether monetary policy is sufficiently restrictive."
"If inflationary pressures persist, we are prepared to raise our policy rate further to restore price stability."
"Low growth, higher rates will impact the government budget."
"Protecting Canada's very good fiscal position is important."
"I don't think fiscal policy in Canada is in a situation where it's unsustainable. But I do think protecting our very good fiscal position is important."

Market reaction

The comments above have little to no impact on the Canadian Dollar. At the time of writing, the USD/CAD pair is trading near 1.3826, unchanged on the day