Bank of Canada governor Stephen Poloz says youth unemployment and underployment is the issue that troubles him 鈥渕ost personally.鈥�

The Bank of Canada governor says it鈥檚 been a 鈥渢ough go鈥� 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鈥檚 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 鈥渋n real time,鈥� he said.

鈥淭here is no predetermined path for interest rates from here,鈥� Poloz said in a speech to the local board of trade in St. John鈥檚.

鈥淎lthough we are confident that the economy has made significant progress, we simply can鈥檛 be certain of exactly how far there is left to go.鈥�

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

Poloz shared several 鈥渦nusual鈥� 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.

鈥淭he fact is, nobody really knows,鈥� Poloz said in response to a question about where rates could go from here.

鈥淲e鈥檙e in uncharted territory.鈥�

In his address, Poloz warned that more surprises could lie ahead 鈥� in 鈥渆ither direction.鈥�

The speech pointed out that the bank鈥檚 decisions have become 鈥減articularly鈥� 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鈥檚 decision to raise the rate a second time following a run of unexpectedly strong economic numbers.

Poloz noted, however, that he doesn鈥檛 expect the economy to maintain the torrid pace it set in the first half of 2017.

The Canadian Press

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