04:49:27 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Royal Bank of Canada
Symbol RY
Shares Issued 1,442,217,272
Close 2014-10-10 C$ 79.64
Market Cap C$ 114,858,183,542
Recent Sedar Documents

Globe says Big Six banks hear BOC has guidance issues

2014-10-14 07:40 ET - In the News

See In the News (C-CM) Canadian Imperial Bank of Commerce

The Globe and Mail reports in its Saturday, Oct. 11, edition that the Bank of Canada aims to reduce its use of forward guidance in the current policy cycle. The Globe's David Parkinson writes that rather than forward guidance, Governor Stephen Poloz says the central bank needs to refocus its communications on "full transparency on the risks that the central bank is weighing." This, he said, "causes the market to assess new information more or less the way as the central bank does." He said: "Forward guidance works by taking certain possibilities off the table. This is tantamount to giving the market a one-way bet." One downside, he said, is that markets can turn volatile when they perceive that forward guidance is about to change. "It is my belief that forward guidance should be seen as a useful tool in the central banker's kit, but one that should be reserved primarily for use at the zero lower bound [i.e. near-zero interest rates]. ... Essentially, the net effect of dropping forward guidance is to shift some of the policy uncertainty from the central bank's plate back onto the market's plate, a more desirable situation in normal times."

© 2024 Canjex Publishing Ltd. All rights reserved.