Poloz says negative rates don't work
Bank of Canada Governor Steven Poloz took negative interest rates out of the policy bag-of-tricks with a comment today.
They "turned out not to work," said at an a Milken Institute event.
Economists tend to reserve comment until they know all the facts and results. That's a hasty judgement given that negative rates are a relatively new phenomenon that the BOJ and ECB are both using and endorsing.
Correction:
Newswires have issued a correction. Evidently, he said that "negative rates turned out to work" and was misheard as saying they didn't work. So there's a 180-degree turn on what he said. Thankfully, the comment didn't have any effect on the market as USD/CAD continues its rip above 1.2700.
