VIDEO: After hiking twice, ‘no predetermined path’ for rates from here: Poloz

Bank of Canada says it’s been a ‘tough go’ for young people in the recovery from the financial crisis

Bank of Canada governor Stephen Poloz says youth unemployment and underployment is the issue that troubles him “most personally.”

The Bank of Canada governor says it’s been a “tough go” for many young people in the recovery from the financial crisis.

There is no prearranged route for further interest-rate hikes from the Bank of Canada, Poloz insisted this week as he signalled the bank would be taking a more cautious approach to any future increases.

The central bank raised rates twice over the summer following the economy’s surprisingly powerful start to the year.

Moving forward, however, Poloz said bank officials will carefully assess a long list of lingering unknowns and external risks to their outlook. The goal is to update their understanding of the economy “in real time,” he said.

“There is no predetermined path for interest rates from here,” Poloz said in a speech to the local board of trade in St. John’s.

“Although we are confident that the economy has made significant progress, we simply can’t be certain of exactly how far there is left to go.”

WATCH: Bank of Canada unveils new banknote celebrating Canada 150

READ MORE: Bank of Canada raises interest rate to 1 per cent

Poloz’s speech comes after the sizzling Canadian economy spurred the bank to raise the rate twice — first in July and then again earlier this month.

Poloz shared several “unusual” unknowns now under close watch by the bank as it considers future moves. They include elevated levels of household debt, downward pressure of technological breakthroughs on inflation and slower-than-expected wage growth.

He also noted how the period since the financial crisis has brought in a protracted period of slow economic growth and extremely low interest rates.

“The fact is, nobody really knows,” Poloz said in response to a question about where rates could go from here.

“We’re in uncharted territory.”

In his address, Poloz warned that more surprises could lie ahead — in “either direction.”

The speech pointed out that the bank’s decisions have become “particularly” data-dependent due to uncertainties such as geopolitical developments and protectionist sentiments in some parts of the world.

He also offered details about the bank’s decision to raise the rate a second time following a run of unexpectedly strong economic numbers.

Poloz noted, however, that he doesn’t expect the economy to maintain the torrid pace it set in the first half of 2017.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Rebels season over after loss in Cullen Cup Final

Westshore had won ten straight games prior to championship game

Island athletes compete at Dragon Boat Championship in China

Eight paddlers part of team Canada at five-day event wrapping up Oct. 23

UPDATE: Crash knocks out power to parts of Saanich

Power outage results in stores at Uptown being closed Saturday morning

Rogue masseur arrested for sexual assault in Victoria

John Heintzelman, 65, is accused of assaulting a person at his former business, James Bay Massage

SOOKE HISTORY: Port Renfrew pioneer schooling

On a hillside above the wharf, the first Port Renfrew School was… Continue reading

Sooke fudge company on Dragon’s Den Nov. 2

Fudge in A Round appearance on Dragon’s Den celebrated with a viewing party at the local Legion Nov. 2

Human remains found at Silver Creek property

RCMP have been searching the property in the 2200 block of Salmon River Road for the past three days

Pumpkins’ versatility goes beyond Halloween

Linda Geggie For the Saanich News Get this. My 13-year-old just came… Continue reading

New B.C. acute care centre opens for young patients, expectant mothers

Facility aims to make B.C. Children’s Hospital visits more comfortable

Search ramps up for B.C. woman after dog, car found near Ashcroft

Jenny Lynn Larocque’s vehicle and dog were found in Venables Valley, but there is no sign of her

Event puts pets in the picture for Halloween

Pets West holding Halloween party Oct. 29 at its Broadmead Village location

Police officer hit by car, stabbed in Edmonton attack back on job

Const. Mike Chernyk, 48, returned to work Thursday

UBC medical students learn to care for Indigenous people

Students in health-related studies to take course, workshop to help better serve Aboriginal people

Dorsett has 2 goals, assist in Canucks’ 4-2 win over Sabres

‘It was a real good hockey game by our group,’ Canucks coach Travis Green said.

Most Read