Bank of Canada Governor Tiff Macklem, in the post-BoC monetary policy decision announcement press conference, said that the bank is prepared to move s forcefully as needed to tackle inflation and took an important step in this fight on Wednesday, reported Reuters.  The BoC needs to ensure that inflation expectations remain moored, and that was a key part of Wednesday's decision, he explained. 

Oil prices have gone up a lot, partly as a result of the war, though many producers are expecting lower prices when the war ends, he noted. When asked about the level of the Canadian dollar, Macklem said that he would leave it to markets to determine its value, though he did note that the interest rate differential with the US may be weighing on the loonie a tad. 

The BoC's 50 bps rate hike sends a message that monetary policy needs to be normalised reasonably quicky, Macklem said.