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

Heart of Our City: Going off script

Drama teacher Alison O’Toole has been a part of 25 musicals in Prince Rupert — and then some.

Rampage comeback at home

Prince Rupert rallied from two goals down in the third period

Multiple complaints about BC Ferries customer service prompts letter

The North Coast Regional District board wrote to BC Ferries about poor customer service on Oct. 6

Electric charging stations could drive Northern B.C. tourism

Community Energy Association wants to design a 1,200-km route from Kamloops to Haida Gwaii

Sports briefs

Here’s what’s going on in sports this weekend

MVP of the Week: Getting up after a fall

Max Erwin steps back into the climbing harness after a fall in California that nearly broke him

Carriers wanted for the Northern View

We have open routes for carriers all over Prince Rupert

Site C decision coming Monday

Premier John Horgan to announce fate of dam project at B.C. legislature

VIDEO: Vancouver Whitecaps acquire star striker Kei Kamara

Kamara has 103 goals and 39 assists in 298 appearances over 11 Major League Soccer seasons

Smartphone pedometers underestimate steps, but valuable health tool: study

UBC researchers found the iPhone underestimated steps by 21.5 per cent

VIDEO: ‘Last Jedi’ premiere kicks off with droids, Daisy Ridley

Latests Star Wars film premiered in style ahead of Dec. 15 theatre debut

UPDATE: Poor ventilation likely cause of carbon monoxide incident at B.C. farm

All 42 patients have been released from hospital, according to Delta Fire

BC Lions part ways with three coaches

These are the first personnel moves made by new general manager Ed Hervey

Most Read