Highlights of prepared remarks from BOC's Macklem press conference

<ul><li>Further rate decisions will be guided by assessment of incoming data and outlook for inflation.</li><li>Monetary policy is working but underlying inflationary pressures are proving more stubborn.</li><li>Higher interest rates are needed to slow growth of demand in the economy and relieve price pressures.</li><li>Labor market remains tight, even if there are some signs of easing.</li><li>Bank of Canada is prepared to raise rates further – Governor Tiff Macklem.</li><li>We are trying to balance the risks of under and over tightening monetary policy.</li><li>If we don't do enough now we'll likely have to do even more later.</li><li>Governing council's decision to raise the policy rate reflected persistence in both excess demand and underlying inflationary pressures.</li><li>Consensus in governing council was that monetary policy needed to be more restrictive to bring inflation back to 2% target.</li><li>Governing council did discuss possibility of keeping rates unchanged, but cost of delaying action was larger than the benefit of waiting.</li><li>With increases in policy rate in June and July, our outlook has inflation going gradually back to 2% target.</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.