BoC sees inflation increase as temporary

In the opening statement before the House of Commons standing committee on finance, the Bank of Canada's Macklem says that the economy is making good progress and doing better than expected.

''The BoC sees inflation increase as temporary''.

Market implications

This is a bearish statement considering the nod that was recently given to a higher rate in 2022 as the output gap is expected to close by then. 

USD/CAD has edged higher in recent trade following the news.