John Manley joins BNN Bloomberg to discuss the Bank of Canada's latest interest rate increase. He says the size of the hike, up 100 basis-points, shows how the Bank is late to the inflation fight. And once the anticipation of inflation takes root, it becomes much more difficult to control.

John says there are many factors driving inflation, including a large fiscal deficit. "If you're driving your car, fiscal measures are the gas pedal. Monetary policy run by the Bank of Canada is the brake. We've got a situation now where we've got our foot on the gas and on the brake at the same time. Let's call that sub-optimal."