Bank of Canada should tap internal talent for top jobs -analysts

Thu Apr 3, 2014 5:10pm EDT
 
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By Louise Egan

OTTAWA, April 3 (Reuters) - As a decision nears on naming the Bank of Canada's new No. 2 policymaker, one of two vacancies on its key rate-setting committee, analysts say the bank should tap internal talent for at least one of the jobs instead of looking outside.

The appointments give Bank of Canada Governor Stephen Poloz, who is just 10 months into his job, a chance to put his stamp on the bank's six-member governing council. Senior Deputy Governor Tiff Macklem will leave for a new job on May 1, and John Murray, one of four deputy governors, is retiring at the same time.

The bank's board of directors is expected to emerge from a two-day meeting on Thursday with a name in mind to succeed Macklem. Finance Minister Joe Oliver must then endorse the candidate and obtain approval from the Conservative government's cabinet before it is announced.

The bank is then expected to fill the newly created position of chief operating officer, who will not sit on the rate-setting council, and follow that with the name of Murray's replacement. Those two appointments do not need political approval.

The current roster of deputy governors and advisers at the bank provides plenty of expertise from which Poloz can choose, and analysts who watch the central bank closely say there's no real need to look elsewhere.

"If I were Steve (Poloz), unless you were really frustrated with what is around you, bringing two people from outside is a bit much," said Chris Ragan, a McGill University professor and monetary policy expert.

Poloz should encourage the ambitions of long-serving central bank economists, he said.

Ragan himself is often seen as a potential candidate but ruled himself out, saying "my ship has sailed for that" and that he is committed to another project for the next five years.   Continued...