The Financial Post reports in its Thursday, May 26, edition that Bank of Canada Governor Stephen Poloz on Wednesday held the benchmark overnight rate at 0.50 per cent. The Post's Joe Chidley writes that while the Federal Reserve has been hinting at further rate hikes, the BOC remains on hold, watching and waiting, a little uncomfortably, no doubt. In terms of monetary policy, the Canadian economy is left to its own devices. Which, given that it is shrinking, is kind of remarkable. In its announcement Wednesday, the BOC pointed to the impact of the Alberta wildfires on the energy sector as hitting the economy to the tune of 1.25 per cent in the second quarter. Given that it had previously estimated 1-per-cent growth in the second quarter, that means the BOC now expects a contraction. Still it is keeping its powder dry, not budging on rates even though it has room to cut if it really thought it had to. The BOC expects the downturn to be fleeting. It is putting its hopes on oil sands operations coming back on-line and Fort McMurray reconstruction to give the economy a boost in the third quarter. The response to this downdraft shows just how selective Mr. Poloz is going to be when it comes to moving on rates.