BoC messaging under scrutiny
The Bank of Canada governor’s communications style is under a microscope — but the jury’s still out on whether he needs to change his strategy.
There was a range of opinions at a Bank of Canada conference Thursday about governor Stephen Poloz’s messaging approach ahead of his interest-rate decisions — including a hike last week that caught some analysts by surprise.
Some forecasters have been openly critical of Poloz for not offering more-explicit signals about his intentions in the lead-up to last week’s announcement.
They say the fact that the bank made no public remarks for eight weeks before last week’s rate increase caused market uncertainty.
The bank responded with an unusual defence of its decision — which included its argument that a large percentage of traders had correctly read Poloz’s most-recent messaging in July that his future decisions would be guided by economic data.