Bank of Canada (BOC) Governor Tiff Macklem warned about inflation looking to last longer than previously anticipated, citing that it is 'transitory but not short-lived'.

Key quotes

“I think transitory to economists, means sort of not permanent.”

“I think to a lot of people, transitory means it's going to be over quickly and maybe I don't know exactly what the right word is, but it's probably something like you know, transitory but not short-lived.”

“I do want to assure Canadians that we are going to keep inflation under control.”

“And we have the tools, we have the mandate and we will be adjusting our tools to bring inflation back to target.”

“We said it's going to be sometime around the middle of next year. If you want it in months, sometime between April and September” when asked about the potential interest rates hike.

Market reaction

USD/CAD is trading almost unchanged on the day, at 1.2450, as of writing, shrugging off the above comments.