UPDATE 2-Bank of Canada No. 2 Tiff Macklem to leave in May

Thu Dec 5, 2013 4:16pm EST
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By Louise Egan

OTTAWA Dec 5 (Reuters) - 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 governor.

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 Canada.

"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."   Continued...