'No predetermined path' for interest rates: Bank of Canada chief

OTTAWA -- The head of the Bank of Canada says that after two interest-rate hikes this summer there is "no predetermined path" for the benchmark going forward.

In a speech today, governor Stephen Poloz says many unknowns and external risks remain, even though the economy had a surprisingly powerful start to the year.

Due to these uncertainties, Poloz warns there could be more surprises ahead.

His speech today in St. John's comes after the sizzling national economy motivated the bank to raise the rate once in July and again earlier this month.

Poloz points out that the bank's decisions have become particularly dependent on data due to uncertainties such as protectionist sentiments in some parts of the world and geopolitical developments.

The speech's focus on the importance of data could be seen as a way to respond to some criticism the bank attracted around its communications approach ahead of the September hike, which caught many forecasters off guard.

Some analysts took issue with the fact the bank did not provide any public remarks for them to scrutinize for hints during the eight-week period between the July and September rate decisions.

In prepared remarks of his address, Poloz said the bank's decision to raise the rate a second time followed a string of unexpectedly strong economic numbers. He noted, however, that the bank doesn't expect the economy to maintain the torrid pace in the second half of the year.

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