Poloz brings new approach to Bank of Canada

The bank’s signature publication — the quarterly monetary policy report — has increasingly moved from a no-nonsense comparison of hard numbers and predictions to more of a narrative of economic trends. Last month, Poloz introduced “confidence bands” on growth projections to underline the cloudy nature of the economic crystal ball.

As the governor explained to a House of Commons committee last week: “With this (and other subtle changes) we are reminding ourselves that economic projections are subject to considerable uncertainty.”

There was nothing subtle about what Poloz did on Oct. 23, however. After 18 months of the bank telling markets and Canadians to prepare for interest-rate hikes, Poloz simply ditched one of his predecessor’s signature innovations — the so-called forward guidance.

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