Comments from Bank of Canada Governor Steven Poloz:

  • Will only use forward guidance during periods of market stress and periods when traditional tools are constrained
  • Otherwise will let markets do their job, which is to deal with daily data flow and grind out new pricing
  • Canada has ‘considerable excess capacity” in economy
  • Risks around achieving inflation target over a reasonable timeframe are roughly balanced
  • Canadian dollar had gone up more than models would have predicted because of weak USD

No visible reaction in the Canadian dollar after the comments.