Bank of Canada's Deputy Governor Paul Beaudry, in a speech to university students in Waterloo, Ontario, said  "we will continue to take whatever actions are necessary to restore price stability for households and businesses and to maintain Canadians' confidence that we can deliver on our mandate of bringing inflation back to 2%."

Even following inflation that slowed again in August, the Bank of Canada on Tuesday said it remained "too high". This followed data that showed price pressures were easing off peak levels.

"In August, inflation stood at 7%. While we're headed in the right direction, that's still too high," Beaudry said in prepared remarks provided ahead of the speech.

Meanwhile, CAD hit a two-year low vs. the greenback on Tuesday after Canada's annual inflation rate slowed to 7.0% in August, below analyst forecasts of 7.3% and down from 7.6% in July.

USD/CAD touched its highest since October 2020 at 1.3375 and is up 0.8% on the day. Since the start of 2022, CAD has lost 5.5%.