Bank of Canada Governor indicated that the key interest rate in Canada may rise by another half a percentage point in June to help keep inflation under control.

Two weeks ago, the central bank raised the key interest rate by half a point to one percent, warning that more price increases will come as it works towards a 2 percent inflation target.

Maclem says the bank will consider another significant half-point interest rate increase at the next interest rate decision in June.

Canada's inflation rate recorded its highest level in three decades at 6.7 percent in March, much higher than the central bank anticipated in the January Monetary Policy Report.

Maclem says the Russian invasion of Ukraine has led to higher energy and other commodity costs, increased disruptions in global supply chains, but he says there are also domestic pressures on prices.