The Globe and Mail reports in its Wednesday edition that the Bank of Canada is firing
back at critics who accuse it
of an "epic" communications failure
for not prepping financial
markets that another rate hike
was coming earlier this month.
The Globe's Barrie McKenna writes that the BOC's surprise
move, however, may be less of a communications
problem than a forecasting
miscue.
Even armed with the country's
most sophisticated computer
models and an army of economists,
the BOC has
largely missed the economy's 2017 turnaround.
It has been playing
catch-up for months.
It is no wonder about half the
market sentiment and the vast
majority of economists surveyed
by Bloomberg did not see the Sept.
6 rate hike coming. To be fair,
most private-sector forecasters
also underestimated just how
fast the economy would shoot
out of the gates this year.
Governor Stephen Poloz was notably slow to acknowledge
the rebound, even as evidence
was mounting in recent
months, including big job gains,
surging housing activity and an
uptick in exports and business
investment. This, after all, was
the pickup Mr. Poloz has been
watching and waiting for since he
took the helm of the bank in
mid-2013
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