BOC’s Macklem: I am confident we will get back to our 2% inflation target

“At our next monetary policy decision in April we will certainly have a discussion about ending the reinvestment phase and starting quantitative tightening,” added Bank of Canada Governor Tiff Macklem late Thursday.

Read: BoC Governor Macklem: “A natural next step” after rate hike is to move to QT

More comments

Being on a rising path for interest rates does not mean we are on auto-pilot, we're going to be careful.

Russian invasion of Ukraine will cause further supply disruptions.

Invasion will weigh on confidence, will hit economic activity.

Expect higher rates will begin to moderate growth in housing sector.

We can sustain the kind of growth were seeing in the housing sector.

There is considerable space to raise interest rates over the course of the year.

We will not rule out 50 basis point hike in the future if  inflation  remains high.

If we have to move more quickly, we are prepared to do that.

We would get worried if wage growth ran significantly above productivity growth. We are not seen that yet.

FX implications

Following the news, USD/CAD grinds higher around 1.2680. The reason could be linked to firmer USD and a pullback in Canada’s key export item WTI crude oil.