Poloz: Bank of Canada in Uncharted Territory

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Stephen Poloz, new central bank chief for Bank of Canada said on Wednesday that the bank can no longer rely on its usual models to assess the economy. This was after unexpected high level of uncertainty with the largest risks coming globally.

Poloz took over as central bank governor on June 3. He was very careful not to reveal specific bias on monetary policy. He stated that the bank only signals its intentions at pre-scheduled announcement dates. The next is set on July 17.

The central bank's chief had his speech delivered in a news conference before the US Federal Reserve's policy announcement. This was also made prior Fed Chairman Ben Bernanke's news conference.

The Bank of Canada is an outlier for being the first to hike rates in mid-2010. It is also an outlier among the Group of Seven industrialized nations after the worldwide recession. The bank's target rate was lifted overnight at 1% at that time.

Tags
Bank of Canada, Federal Reserve

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