Making some comments on inflation, Bank of Canada (BOC) Governor Tiff Macklem said in an interview late Wednesday that “inflation in Canada is going to remain painfully high.”

Also read: Canada: Annual CPI rises to 8.1% in June vs. 8.4% expected

Additional quotes

“Inflation will probably remain above 7% for the rest of 2022.”

“July's inflation rate is likely to be below June's 8.1%.”

“Demand is running ahead of the economy's ability to produce the goods people want, which will continue to create inflationary pressures.”

"We are deliberately front-loading our interest rate response. We want to get ahead of this.”

Market reaction

USD/CAD was last seen trading almost unchanged on the day at 1.2878.