The Bank will use its monetary policy tools to return inflation to target and keep inflation expectations well-anchored," it said in the decision statement. OTTAWA, June 1 (Reuters)- The Bank of Canada on Wednesday raised its policy interest rate to 1.5% from 1.0%, its second consecutive 50-basis-point hike, and said it was prepared to act "more forcefully if needed" to bring inflation back to target. The central bank said Canada's economy was clearly operating in excess demand and it sees inflation moving higher in the near-term, so interest rates would need to rise further.