Canada set to announce Macklem's successor at central bank

Fri Apr 11, 2014 3:08pm EDT
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WASHINGTON, April 11 (Reuters) - Canada will appoint the new senior deputy governor of the Bank of Canada "quite soon," Finance Minister Joe Oliver said on Friday, referring to the successor to the central bank's No. 2 policymaker Tiff Macklem who is leaving on May 1.

Central bank chief Stephen Poloz, who appeared alongside Oliver at a news conference following a meeting of Group of 20 finance officials, said the conditions for deflation don't exist in Canada or in other advanced economies where inflation is below target but that the risk of deflation could increase in the case of a shock to the economy.

Policymakers take comfort from signs the global economic outlook is improving, he said.

"So as long as we're below (the target inflation rate) significantly, the risk that you're raising is one that we'll all be watching carefully," he said when asked if he was concerned about deflation.

"But the outlook continues to heal and to be giving us encouragement that we are on our way back home," he said. (Reporting by Louise Egan; Editing by Andrea Ricci)