MNI POLICY: BOC Plays Down Hawkish Policy....>

CANADA: MNI POLICY: BOC Plays Down Hawkish Policy Interpretation

- The Bank of Canada's top two officials Tuesday continued to play down the

financial market's hawkish interpretation of the central bank's decision to drop

its "gradual" wording in its communication about future policy, noting that

getting to the neutral rate estimated between 2.5% and 3.0% by the BOC won't be

a "rapid" process. When asked whether the changes to the October statement were

meant to signal more frequent rate hikes, Governor Stephen Poloz told the House

Committee on Finance that data dependency remains the key determinant of the

pace of tightening and that the BOC continues to form its judgment at each

meeting. Poloz testified with Senior Deputy Governor Carolyn Wilkins.

- For full story see MNI Main Wire at 00:34 GMT 10/31, or contact us for full

access.