Bank of Canada Governor Stephen Poloz said policy caution and uncertainties around the economic outlook remain prominent in the central banks thinking, even as the economy ends 2017 running close to capacity.
Poloz used his last speech of the year to highlight three subjects he called slower-moving, nagging issues that keep him up at night: cyber threats to the financial system, high household debt levels and labor market slack, particularly youth underemployment.
It was in the section on labor where Poloz provided the most insight on monetary policy, underscoring his belief there is slack that should be accommodated with low interest rates even if other indicators suggest borrowing costs should rise. The Bank of Canada has k…
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