The governor of the Bank of Canada is telling Canadians to brace for further economic stress this winter and further skyrocketing prices.

According to Blacklock’s Reporter, Tim Macklem made the remarks to reporters after announcing another rate increase to 2.5% on Wednesday.

“We do have a material reduction in growth. We are forecasting growth this year at three-and-a-half percent moving down to one and three-quarters percent next year. That is a material reduction in growth. That does imply some pain,” Macklem said.

“Yes, the economy is going to slow. The economy needs to slow. We need to take the steam out of inflation.”

Wednesday’s one-percent rate hike was the sharpest increase the Bank has seen in over 24 years. 

Macklem was grilled by reporters over past failed predictions. In 2020, the Bank told Canadians that inflation would “remain less than two percent.” 

“We’ve done our best. We expect interest rates will need to rise further to cool demand and bring inflation back to target,” said Macklem.

Conservative leadership candidate Pierre Poilievre has blamed Macklem for playing into Prime Minister Justin Trudeau’s spending habits. 

While campaigning to become leader Poilievre pledged to fire Macklem and appoint a new governor to the Bank. 

“I would replace him with a new governor who would reinstate our low-inflation mandate, protect the purchasing power of our dollar, and honour the working people who earned those dollars,” said Poilievre. 

Soon after Poilievre’s remarks, deputy governor Paul Beaudry admitted that the Bank should be “held accountable” for being unable to keep inflation within targets. 

“The aspect that we should be held accountable is exactly right,” said Beaudry.

“Right now we completely understand that lots of Canadians can be frustrated at the situation. It’s difficult for a lot of people. And we haven’t managed to keep inflation at our target, so it’s appropriate people are asking us questions.