New deputy could offer clues to post-Carney Bank of Canada

Tue Dec 11, 2012 10:26am EST
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* BoC weighs academic vs banking skills in deputy governor hunt

* Last hire before Mark Carney's departure to head BoE

* Two internal advisers seen as strong contenders

* Not clear if incoming governor will have a say in hire

By Louise Egan

OTTAWA, Dec 11 (Reuters) - The Bank of Canada's pick to fill a vacancy on its rate-setting council could offer clues on the priorities of the well-respected central bank as it gets ready to replace Governor Mark Carney, named last month as the next chief of the Bank of England.

As it seeks to replace outgoing deputy governor Jean Boivin, the bank's hiring committee will weigh the advantages of academic candidates or those with an inside view of central bank operations against those who may have a deeper knowledge of financial markets, an asset Carney brought and which some say propelled him to central banking stardom.

Most Bank of Canada watchers say private sector banking experience is not crucial for a deputy governor job, one of four positions ranking just below the governor and the senior deputy governor. But they acknowledge that the bank may value that skill more highly than it did in the pre-crisis days, when academic credentials were highly prized.

"Having financial market experience won't be and shouldn't be a negative when it comes to considering potential candidates for deputy governor," said Finn Poschmann, vice-president of research at the C.D. Howe Institute, a think tank.   Continued...