Why So Defensive, Bank of Canada?

Find a better way to express your feelings than Graeme Wheeler did.

Photographer: Mark Coote/Bloomberg

Here's hoping Canada doesn't spoil its great economic story by going down the New Zealand route.

The Canadian central bank took the unusual step this week of publicly rebutting criticism by the chief economist of one of the country's biggest banks. Doug Porter of Bank of Montreal wrote in his weekly note on Sept. 8 that the bank had failed to sufficiently communicate its intention to raise its benchmark interest rate — a move that many economists rather shockingly didn't see coming. 

The critique clearly struck a nerve with the Bank of Canada, and spokesman Jeremy Harrison came out swinging. Harrison said the bank indicated in July that policy would be forward-looking and data-dependent. And while most economists didn't forecast a step up last week, Harrison said that financial markets saw it as a more or less 50-50 proposition.