New BoC governor named

Tiff Macklem is the new governor of the Bank of Canada.

The dean of the business school at the University of Toronto was senior deputy governor of the bank from July 2010 to May 2014. Macklem will begin his term on June 3; current governor Stephen Poloz’s seven-year term expires June 2.

“After pursuing an exhaustive domestic and international selection process for this crucial role, I’m delighted to say that Tiff Macklem has the exceptional qualities to fulfil this role,” said Claire Kennedy, chair of the special committee of the Bank of Canada’s board of directors, in a release.

“Tiff has deep knowledge of monetary policy and financial stability issues, a proven crisis management track record, and extensive senior leadership experience. We are confident Tiff will make an outstanding contribution to promoting the economic and financial welfare of Canada, and to upholding the bank’s exemplary reputation as a leading central bank.”

Finance Minister Bill Morneau says Macklem brings a deep knowledge of and expertise in financial markets and will serve the central bank well as it navigates the an economic crisis like no other.

Speaking at a morning press conference, Macklem says he found out about the appointment yesterday and is hoping for a seamless transition over the coming weeks.

Poloz calls leaving the bank “bittersweet,” but says the central bank will be “in solid hands” when Macklem officially takes over.

Macklem was considered a top candidate to become governor in 2013, but was passed over when Poloz was appointed. Before Macklem’s term as senior deputy governor, he was associate deputy minister at the Department of Finance, serving as Canada’s representative at the G7, G20 and Financial Stability Board.

Macklem first joined the BoC in 1984, after graduating from Queen’s University in 1983 with a bachelor’s degree in economics. He also holds a master’s degree and a PhD in economics from Western University.

Many industry observers had pegged Carolyn Wilkins, BoC senior deputy governor, as the likely successor to Poloz.

The bank controls the country’s money supply, trying to support economic growth and stability while keeping inflation low.

Its governor’s statements about the economy and the financial system set trends and move markets.