Macklem opening statement: 'We need higher rates and the economy can handle them'

Reiterates that the BOC will act forcefully if need be
Canadian should expect rates to continue to rise towards more neutral settings, current estimate is that is between 2-3%
If demand responds quickly to higher rates and inflationary pressures moderate, it may be appropriaate to pause hikes once we get closer to the neutral rate
On the other hand, we may need to take rates modestly above neutral for a period to bring demand and supply back into balance and inflation to target
Impact of Russia-Ukraine war on Canada is likely to be small
Businesses indicated they will need to raise wages to attract workers
Exports are picking upWe are concerned about the broadening of inflation in CanadaCanadians should expect rates in a neutral setting, between 2-3%We have an inflation target, not an interest rate target

I believe the comment on 'forceful' is a hint another 50 bps hike in June. USD/CAD has slipped on the comments but it comes at the same time as an improvement in the broad risk trade and dip in the US dollar.