The BoC already cut its benchmark rate twice this year, first from 1 percent to 0.75 percent in January, and then to 0.5 percent in July.
Now, rates as low as minus 0.5 percent may be considered to help reach the bank's 2 percent inflation target, Poloz explained. The annual inflation rate was last recorded at 1 percent in October, holding steady from a month earlier.
His comments came as the Canadian loonie fell to an 11-year low of $0.74 Tuesday, as low oil prices dragged on the resource-dependent economy.
Negative interest rates are just one of the unconventional monetary policies that Poloz said sits in the bank's "toolkit," alongside forward guidance for markets, large scale asset purchases, and funding for credit programs that aim to increase lending to households and businesses.
After seeing markets adapt to negative rates set by the European Central Bank and Swiss National Bank, Poloz said the BoC "is now confident that Canadian financial markets could also function in a negative interest rate environment."
"I certainly hope we won't ever have to use these tools. However, in an uncertain world, a central bank has to be prepared for all eventualities," Poloz explained.