“Sometimes it’s best to not say anything at all. But for the Bank of Canada, that isn’t an option right now,” Gordon Isfeld wrote for the Financial Post yesterday. Isfeld continued, “It’s been a couple of weeks of uncharacteristic confusion in financial markets over perceived mixed messages from the central bank on its monetary policy — all in stark contrast to its oft-touted goal of clarity and transparency. First, comments in a Vancouver Island speech on Oct. 15 were quickly interpreted on Bay Street as a critical shift in thinking by Mark Carney and his inner circle. Mr. Carney did not include in his speech an often-repeated line that ‘modest withdrawal of the present considerable monetary policy stimulus may become appropriate.’ By dropping what had become a standard line of interest-rate guidance, he set some tongues wagging. Was that a hawkish or dovish move? Others were confused by the addition of another line, saying the bank ‘would clearly declare’ its intentions if it decided to ‘lean against emerging imbalances in household debt.’ Wasn’t Mr. Carney actually offering a less hawkish assessment, setting the stage for telegraphed rate increases?” Read the full article here. | Raymond Matt, CFP, CLU, TEP, CHS
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