UPDATE 3-New Bank of Canada chief less explicit in rate-hike stance

Thu Jun 6, 2013 2:06pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Warns that interest rates will rise one day

* Does not repeat BoC language on eventual rate hikes

* Says Bank of Canada has role in nurturing economy

* First public remarks since taking over on Monday

By Louise Egan and Randall Palmer

OTTAWA, June 6 (Reuters) - The new governor of the Bank of Canada said on Thursday that interest rates will rise one day, but he stopped short of repeating his predecessor's explicit guidance on the likely need for rate hikes, rather than cuts, in the future.

In his first public appearance since taking the reins at the central bank on Monday, Stephen Poloz said he sees no immediate risk from current rock-bottom interest rates, although he did not want loose monetary policy to last for too long.

Many analysts had expected Poloz to be more dovish than previous Bank of Canada Governor Mark Carney, who stepped down last month after a year beaming out a clear message that the bank's next move would be a rate increase.

The message from Poloz could be interpreted either way, the analysts said.   Continued...