Bank of Canada Governor Poloz spoke with CNBC
The Bank of Canada Governor Stephen Poloz can't send a signal on interest rates because he doesn't know when they will rise again.
"That's a question even I don't know the answer to. We're being very open about that. So we've explained to people that there are a number of important issues that force us to not be mechanical or to use a rule or to plan ahead in that way. We've said we are totally data dependent," Poloz said in an interview with CNBC at the World Economic Forum in Davos, Switzerland.
He did however say that the BOC will be more careful in raising rates because of high debt loads, so the pace will be slower than in past expansions.
"One of the most important (issues) is with the level of debt we have today, compared to what we had 10 years ago. We are absolutely certain the economy will prove to be more sensitive to higher interest rates than in the past," Poloz said.
He also continued to highlight NAFTA risks but said the response wouldn't necessarily be straightforward. It could cause inflation and FX moves that the central bank would have to take into account.
