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

High school graduation rates on the rise in Greater Victoria

High school completion up from 71 to 86.8 per cent over 10 years

Pacific Centre Family Services Association a winning design in Colwood

Victoria Real Estate Board winner a welcoming sight

Victoria curling foursome looks to defend provincial title

2019 BC Junior Curling Championships held in Vernon from Dec. 27, 2018 to Jan. 1, 2019

Top tourism executives in B.C. earn almost $1 million

Destination B.C. CEO Marsha Walden received total compensation of $296,487 in 2017-18

New figures show City of Victoria spent $30,000 to remove Macdonald statue

Contentious decision sparked controversy, apology from mayor

Unique technology gives children with special needs more independent play

UVic’s CanAssist refined seven prototypes aided by $1.5M government contribution

Greater Victoria holiday craft fair roundup for Nov. 16 to 18

Check off all of the items on your shopping list at these great events

Greater Victoria Crime Stoppers wanted list for the week of Nov. 14

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Children between 6 and 9 eligible for $1,200 RESP grant from province

BC Ministry of Education is reminding residents to apply before the deadline

Privacy concerns over credit card use for legal online pot purchases

Worries follow privacy breaches at some Canadian cannabis retailers

NEB approves operating pressure increase to repaired Enbridge pipeline

The pipeline burst outside of Prince George on Oct. 9, now operating at 85 per cent

B.C. VIEWS: Setting speed limits in a post-fact political environment

Media prefer ‘speed kills’ narrative, even when it fails to appear

Controversy erupts over Japanese flag in B.C. classroom

Online petition demanding removal has collected more than 5,700 signatures

Death toll rises to 76 in California fire with winds ahead

Nearly 1,300 people remain unaccounted for more than a week after the fire began

Most Read