Bank of Canada Governor Andrew Bailey reiterated on Monday that interest rates in Canada will need to be lifted and said that inflation is too high and is going to be elevated for longer than we previously thought, reported Reuters.  

Additional Remarks as summarised by Reuters:

Demand is beginning to run ahead of the economy’s productive capacity.

Businesses can’t find enough workers to meet demand and they’ll need to raise wages to attract and retain staff.

A broadening in price pressures is a big concern.

The bank is committed to using interest rates to return inflation to its target and will do so forcefully if needed

We do not have a pre-set destination for the policy interest rate.

How high rates go will depend on how the economy responds and how the outlook for inflation evolves.

Reiterates it may be appropriate to pause our tightening once we get closer to the neutral rate and then take stock.

Reiterates that, on the other hand, the BoC may need to take rates modestly above neutral for a period to bring demand and supply back into balance and inflation back to target. 

Macklem said that it's fair to say that prices increases are not 'transitory' as he said they would be last year.

Macklem said that inflation is close to peak. 

Macklem said he expects the bank will be considering another 50 bps increase in June.