By Louise Egan
OTTAWA Dec 5 Bank of Canada Senior Deputy
Governor Tiff Macklem is resigning in May 2014 to become dean of
a business school in Toronto, the central bank said on Thursday,
some six months after Macklem was passed over for the job of
Macklem had been widely seen as the front-running candidate
to replace Mark Carney as governor at the Bank of Canada, but in
May the government appointed another prominent economist,
Stephen Poloz, instead. Poloz took over in June.
The announcement that Macklem is leaving to take a job at
the University of Toronto's Rotman School of Management comes a
day after the bank turned slightly more dovish, warning about
the risk of inflation falling below target.
Economists who watch the central bank closely said they did
not expect Macklem's departure to have any significant effect on
policy, since the six-member governing council makes decisions
by consensus rather than by vote.
"There is no current indication of any rift within the
so-called center bloc at the Bank of Canada, so Tiff leaving
doesn't imply some champion of some cause is no longer there,"
said Paul Ferley, assistant chief economist at the Royal Bank of
"There's no expectation that policy will be altered in any
material way, but we'll have to see who gets appointed the new
senior deputy governor."
Macklem praised Poloz and his other central bank colleagues
and the bank's "first-rate research and policy formulation."
"Canada's economy is in good hands," he said in the
statement issued by the central bank.
Poloz, the former head of Canada's export agency who took
the helm earlier this year, also heaped praise on his
"Tiff has dedicated nearly 30 years to the bank and to
Canada, and his influence can be seen in every aspect of our
work and in central banking worldwide," Poloz said.
"I look forward to our continuing close collaboration during
the months leading up to his departure."
The mild-mannered Macklem has spent most of the past 25
years at the Bank of Canada and has held the No.2 job there
since 2010. He did two stints at Canada's finance ministry, and
was the government's point man at the Group of Seven and Group
of 20 discussions from 2007 to 2010, throughout the global
Canadian Finance Minister Jim Flaherty's office was not
immediately available for comment.
INTERNAL OR EXTERNAL CANDIDATE?
The bank will form a special committee of directors to
recruit Macklem's successor. The appointment must be approved by
Conservative Prime Minister Stephen Harper's cabinet.
One obvious first place to look would be among the remaining
members of the bank's governing council. The four deputy
governors are John Murray, Timothy Lane, Agathe Cote and
There are also eight advisers to the governing council,
among them the respected central bank veteran Donna Howard.
"The question would be, will it be from inside the bank or
someone from outside," said Craig Alexander, chief economist at
"They have very strong internal candidates. They have lots
of bench strength so they can draw on that to promote from
within if they want to," he said.
Many other potential contenders emerged in the lead-up to
recent central bank appointments. These included Jean Boivin, a
former deputy governor now at the finance ministry; Darrell
Duffie, a Stanford University professor; Andrew Spence, managing
director at the OMERS pension fund; Chris Ragan, a McGill
University professor, and others.