Bank of Canada Governor Poloz has 'clarified;' his comment earlier
- He says the 18 month comment was not about monetary policy
- it was about the output gap
His earlier comment was reported as:
- "Our best plan right now, we think, is to wait for the next 18 months or so."
Now he says that wasn't related to rates being on hold.
- "My statement concerning the need to wait 18 months was in reference to the time frame over which the output gap is expected to dose, as noted in the Bank's October Monetary Policy Report. It was not intended as a reference to the Bank's monetary policy."
This 'clarification' has sent the CAD back down again:
Wow ... USD/CAD all over the shop.
Its going on to 6pm in NY
Its going on to 7am in Tokyo
This is the worst liquidity time of the 24 hour cycle
