UPDATE 3-New Bank of Canada chief signals hands-off stance

Wed Jun 19, 2013 5:14pm EDT
 
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* Poloz says nothing more BoC can do to spur growth

* Declines to comment on bank's 14-month tightening bias

* Says business confidence crucial, urges patience

* Analysts see no sign of policy shift

By Euan Rocha and Peter Henderson

BURLINGTON, Ontario, June 19 (Reuters) - Bank of Canada Governor Stephen Poloz signaled a hands-off approach to monetary policy on Wednesday, calling for patience, at least for now, in "letting Mother Nature do her usual job" in rebuilding an economy he said was still damaged.

Poloz said substantial monetary stimulus, combined with a pickup in foreign demand for exports, especially in the United States, would gradually restore confidence and let corporate Canada take the baton from indebted consumers in driving growth.

In his first speech and news conference after becoming governor on June 3, Poloz would not say if he agreed with the mild interest rate-hike bias held by his predecessor in the job, Mark Carney, over the past 14 months.

But he made clear rate cuts were not on his radar, even as he repeatedly described the recovery from the 2008-09 recession as tougher than any other, given reduced capacity in the auto sector and other industries and greater business uncertainty.   Continued...