Bank of Canada governor’s communication approach under scrutiny at conference
OTTAWA — The central bank governor’s communications style is under a microscope — but the jury is still out on whether he needs to change his strategy.
Experts shared a range of views Thursday at a Bank of Canada conference about governor Stephen Poloz’s messaging ahead of his interest-rate decisions, which included a hike last week that caught some analysts by surprise.
The rate decision attracted open criticism from forecasters over the fact the bank didn’t offer more-explicit signals about its intentions beforehand.
Others, however, have dismissed the concerns. They’ve argued that stronger-than-expected economic numbers released before the rate increase provided more than enough information to persuade markets that, despite the bank’s silence, a hike was on the way.