stephen-poloz-boc-Bank-of-Canada

The BoC governor’s communications style is under a microscope — but the jury’s still out on whether he needs to change his strategy.

Read: BoC plays too close to the chest, disrupts market

There’s a range of opinions at a BoC conference today 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.

Read: Expect ‘significant’ increase in bond yields: economist

They say the fact that the bank made no public remarks for eight weeks before last week’s rate increase caused significant 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.

There have been recommendations at the conference that the bank start consistently offering markets conditional guidance about future rate decisions, but others say Poloz has been clear enough in his communications.

Also read: How the Bank of Canada is failing investors (a 2015 op-ed on the BoC’s communication strategy)

Originally published on Advisor.ca
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