Poloz recommends dropping forward guidance as conditions normalise
Bank of Canada governor prefers ‘full transparency’ around risks
Forward guidance is a "useful tool" for central banks but should be "reserved primarily for use at the zero lower bound", according to Bank of Canada governor Stephen Poloz, who has published a discussion paper on the topic of uncertainty in policy-making.
He is at odds with the almost half of the 60 respondents to the latest CentralBanking.com poll, however, who insisted that forward guidance is "a viable long-term communications tool" for central banks.
In his paper, published on October 10
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