* Poloz says can only control inflation, not exchange rate
* Hints at shift in communications, leadership style
* BoC will start holding media lockups for deputy governors'
OTTAWA, Sept 27 Canada's central bank will never
shift its focus from inflation to the exchange rate, Bank of
Canada Governor Stephen Poloz said in an interview published on
Friday, confirming a hands-off approach even if the strong
currency were to hurt exporters.
"You can really only control one thing," Poloz told the
Globe and Mail's Report on Business magazine.
"The thing we care most about is inflation, so we're not
going to ever deviate from that just because something about the
dollar is bugging us."
Poloz replaced Mark Carney at the Bank of Canada in June.
His past as head of the country's export credit agency led to
speculation he would be more sympathetic toward exporters'
desire for a weaker Canadian dollar versus the U.S. dollar,
which would help the struggling sector get back on its feet.
He has repeatedly denied any such inclination.
The Bank of Canada has a policy of not
intervening in the exchange rate except in extraordinary
Poloz also suggested in the interview a possible shift in
the Bank of Canada's communications style to give a greater role
to his deputies and show that policy making is not a one-man
show but a team effort.
"My style is not to lead with what I think, but to sit back
and let 'er go," he said.
One thing Poloz could do is allow his deputies to speak more
freely in public than has been the norm. Unlike the U.S. Federal
Reserve, the Bank of Canada's six-member governing council makes
decisions by consensus rather than voting and they all stick to
the same script when speaking in public.
Communicating policy decisions is largely the job of the
governor through speeches and news conferences, while the
deputies' speeches rarely break new ground.
But Poloz made clear any change would be incremental. He
said he prefers the Canadian model to the one employed by the
U.S. Federal Reserve, which has confused markets with often
contradictory policymakers' views on the best strategy for
rolling back from the massive bond-buying program.
"At a minimum, I would say that I wouldn't want monetary
policy to be a source of uncertainty," he said.
In another sign the bank might be allowing deputies to share
more of the limelight, the bank announced on Thursday it will
start holding media lockups for deputies' speeches whereas until
now they were reserved only for the governor's speeches.
Lockups are typically used for market-sensitive information.
The system allows reporters to read the text ahead of time on
the condition they don't release any news stories until a
The first such lockup will take place on a trial basis on
Oct. 1 for a speech by Senior Deputy Governor Tiff Macklem.
"Starting in 2014, the Bank of Canada will be in a position
to hold lockups for speeches by all deputy governors, as has
been requested over the years by reporters covering the Bank,"
said Bank of Canada spokeswoman Dale Alexander.