BoC mes­sag­ing un­der scru­tiny

Lethbridge Herald - - BUSINESS & AG NEWS - THE CANA­DIAN PRESS — OT­TAWA

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.

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