Bank of Canada Governor Stephen Poloz may have solved his communication problem.
It might not seem like it. The central bank’s decision to raise interest rates for a second consecutive time on Sept. 6 qualifies as a surprise, and surprises are what most irritate Poloz’s detractors. The value of the dollar jumped after the announcement, suggesting some traders hadn’t anticipated the move. A group of academic and Bay Street economists that gathers to discuss monetary policy ahead of each Bank of Canada decision had concluded that borrowing costs were fine where they were. And there was all that uncertainty. North Korea’s nuclear ambitions, the renegotiation of the North American Free Trade Agreement, and worries over a U.S. government shutdown this autumn all seemed like good reasons to let things lie.
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