Top Bank of Canada officials speak after holding interest rate at 5%

TORONTO (Reuters) - Below are some key quotes from a news conference by the Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers on Wednesday after the central bank held key interest rate at 5%.

MACKLEM ON INFLATION BEING BROAD-BASED

"If you look at the share of CPI components that's rising more than 3%, that's slightly over 3%, so what this (is) telling you is that there's still underlying inflationary pressures across many goods and services. Inflation is still somewhat broad-based and that's why we're concerned about the persistence in underlying inflation and that's why we're holding our policy rate of 5% today."

MACKLEM ON FUTURE OF QUANTITATIVE TIGHTENING

"With respect to quantitative tightening, we'll take it one decision at a time but what would be the factors that would lead us to end quantitative tightening. Obviously, our balance sheet is gradually declining. At a certain point it will reach a more normal level and it will be time to start purchasing again to keep our balance sheet at the size we need. We put out some estimates about where we think that might be. Those are estimates, we're still some ways from there. As we get closer we will certainly be continuing to refine that view and engaging with market participants. And I can assure you, as we've done every time we've changed policy with respect to our balance sheet, we will get out ahead of that and indicate how we'd likely do that. But we're certainly not there yet."

MACKLEM ON PROSPECTS OF A DEEP RECESSION

"We're not forecasting a deep recession. We don't think we need a deep recession to get inflation back to target but we do need this period of weak growth and what that has done is it has allowed supply to catch."

MACKLEM WHEN ASKED IF GOVERNORS DISCUSSED A RATE CUT WEDNESDAY

"The focus across the council was very much a hold, there is a clear sense that yes inflation is coming down but there is a persistence underlying inflation, monetary policy is working but we need to keep it working"

MACKLEM ON RATE CUT POSSIBILITY

"If you look at indicators there has been some progress but that progress has been uneven and we are concerned about the persistence of underlying inflation. And what that means is that it is premature to discuss reducing our policy rate."

MACKLEM ON NEED TO SEE MORE PROGRESS ON INFLATION

"Our deliberations are shifting from whether we have done enough and how long do we hold. We need to see more progress before we see that discussion."

(Reporting by Divya Rajagopal, Fergal Smith, Maiya Keidan; Compiled by Denny Thomas)