Bank of Canada Governor Tiff Macklem delivered an update on Wednesday morning about the bank's decision to hold the interest rate steady at five per cent.

The head of the Bank of Canada is also signalling that it’s “too early” to cut interest rates until there’s more progress in taming core inflation. He said the central bank wants to see sustained declines in inflation before pivoting to rate cuts.

"In the six weeks since our January decision, there have been no big surprises. Economic growth has remained weak and inflation has eased further as higher interest rates restrain demand and relieve price pressures," he said.

There have been “no big surprises” in the economic data since the central bank’s hold in January, he said, but underlying price pressures are “persisting.”

“We’ve come a long way in our fight against high inflation. Monetary policy is working—inflation is coming down. But it’s too early to loosen the restrictive policy that has gotten us this far,” Macklem said in his remarks.

The Bank of Canada’s policy rate sets the cost of borrowing for institutions across the country and informs interest rates Canadians pay on debt, including mortgages and other credit products.

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