The Financial Post reports in its Thursday, Oct. 23, edition that the Bank of Canada dropped its neutral forward guidance Wednesday. The Post's David Madani writes that market inferences about the policy rate outlook will now depend more on the BOC's economic forecasts and its assessment of financial stability risks. On these grounds, the BOC still appears to be neutral. While keeping its policy interest rate on hold at 1 per cent the BOC made some noteworthy changes to its communications approach, risking some confusion perhaps in the process. In previous policy statements, the BOC had provided explicit forward guidance to markets by saying it "remains neutral with respect to the next change to the policy rate. Its timing and direction will depend on how new information influences the outlook and assessment of risks." That type of forward guidance was removed this time around and, judging by Governor Stephen Poloz's recent remarks, will only ever return in more extreme economic situations. This change in the policy statement, however, does not imply the BOC is either about to hike or cut rates. The BOC says the risks to the outlook for inflation remain balanced, while those related to household debt have not diminished.