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

Lake Country seniors receive Christmas surprise

Hampers will be given to 20 lucky seniors in need next week

Column: Make it a green Christmas

Instead of purchasing a cuddly stuffie this year, put your money towards helping the real thing.

Sagmoen neighbours recall alleged hammer attack

Woman was screaming outside Maple Ridge townhouse in 2013

Kelowna city councillor suggests bringing back photo radar

Gail Given says it could help generate traffic fine revenue for the city—and make roads safer

What’s happening

Find out about the events happening in your community this weekend

B.C. woman brain injured in crash as a baby gets $1.1 million in damages

Trial heard the woman was 16 months old, being carried by her mother when they were both hit

Lind nets three in Rockets win; Dube and Foote named to Canada’s roster

Kole Lind returns from national junior camp to lead Rockets to victory in P.A.

Interior Health holding immunization clinic in Vernon Saturday

IH issues list of Okanagan meningococcal immunization clinics

Court denies WestJet’s bid to toss out discrimination lawsuit of former worker

Mandalena Lewis is suing WestJet over allegations of gender-based discrimination

VIDEO: 3 months later, rescued sea lion released back into ocean

The young animal was found in Campbell River three months ago

Annual Christmas meal held as Kelowna Gospel Mission

The meal will be held tomorrow from 12 to 6 p.m.

Michaels: Big Brother has become a big letdown

“You have nothing to fear if you have nothing to hide, but privacy should still have some appeal.”

Most Read