Bank of Canada Governor Stephen Poloz has a reputation for being dismissive of financial markets. But it’s not quite true. “My motto is you always ignore what the market is telling you at your peril,” he said in Australia last month, before adding, “but they are prone to exaggeration.”
By the evening of March 3, Poloz and his five deputies will have to decide to what extent financial markets are exaggerating the economic threat posed by COVID-19. They could push a decision to the limit and wait until the early hours of March 4, when the Bank of Canada is scheduled to update its policy stance at 10 a.m. eastern time. Typically, the policy statement is finalized the night before to leave time for translation and formatting.
It’s also conceivable that the Bank of Canada’s translators have been told to be on call 24/7 for the next few days.
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