Here’s what Bank of Canada Governor Stephen Poloz wants you to take away from his speech in Whitehorseon June 15: the world is unfolding roughly as the central bank thought it would a month earlier when it published its latest quarterly economic report. That may not strike you as revelatory, and that’s okay. The news in the Yukon was that Poloz decided to devote an entire speech to what amounted to an economic update. Until now, he has stubbornly refused to engage in a “running commentary” on economic indicators between the quarterly outlooks. Poloz is loosening up a little.
The Bank of Canada is a relatively opaque central bank. That is in part because it is allowed to be: the institution gets a fairly easy ride from members of parliament, senators and the press corps. At the same time, Canada’s central bank has installed very few windows that would allow a peek at how interest rates are set. It is one of the few major central banks that doesn’t keep minutes of its policy deliberations. The institution keeps a fairly tight leash on its deputy governors, preferring to let Poloz set the tone.
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