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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

QUIZ: Put your knowledge of Canada to the test

How much do you know about our country?

Commercial fishery closed tonight due to local concerns

The fishery was supposed to open tonight

Staff at checkpoint experiencing threats, racism says Nuxalk EOC

The staff at the checkpoint have been subject to threatening behaviour on multiple occasions

B.C. reopening travel not sitting well with several First Nations

A number of safety conditions have yet to be met Indigenous leaders maintain

Community helps purchase new CPR machine

The Bella Coola Hospital is the proud new owner of a brand-new Lucas 3 chest compression system.

‘This year is unlike any other’: Trudeau delivers Canada day address

Sophie Gregoire Trudeau and the Prime Minister release video celebrating the national holiday

PHOTOS: Dual rallies take over Legislature lawn on Canada Day

Resist Canada 153 highlighted colonization and genocide, Unify the People called COVID a hoax

Gov. General honours Canadians for bravery, volunteer service

Five categories of winners presented on Canada Day

COVID-19: Should non-medical masks be mandatory in Canada?

New poll shows Canadians are divided on the rules around mandatory masks

‘A little bit scary for everybody’: Air passengers wary as new rules take effect

Masks or face coverings have been mandatory on flights since April 20

VIDEO: Prince William and Kate chat with B.C. hospital staff about COVID-19

Seven-minute video posted to Youtube on Canada Day

River centre says heavy rains could bring flooding to central, northeastern B.C.

Water levels are already unusually high and river banks can be extremely unstable

Most Read