TORONTO (Reuters) - Tiff Macklem, a keen proponent of financial reform and a familiar face at G7 and G20 meetings, will assume the No. 2 job at the Bank of Canada, but his start date will not be until July, following a G20 summit in Canada, the bank said on Friday.
Macklem, currently the associate deputy minister at the Department of Finance and Canada’s G7 deputy, was widely viewed as a leading candidate for the job of senior deputy governor at the central bank.
He and bank Governor Mark Carney have already worked together on international economic issues, and although insiders say Macklem’s mild-mannered reserve contrasts with Carney’s more aggressive style, they are compatible.
“It brings a very bright light back in-house to the Bank of Canada, and that will serve the BoC well in re-stocking talent in order to address the challenges of exit strategies that lie ahead,” said Derek Holt, an economist with Scotia Capital.
Macklem will serve a seven-year term and succeed Paul Jenkins, who announced last year he would step down when his term ends in April. It was not immediately clear how the bank will manage the gap in its senior ranks from then until Macklem takes over in July.
He will join a six-member council that decides on interest rates and will take responsibility for co-ordinating the central bank’s operations and overseeing strategic planning.
Until then, the government is holding on to him as it prepares for a series of G20 finance ministers meetings leading up to leaders’ summits in June in Toronto and in November in Seoul, South Korea.
Macklem co-chaired a G20 working group on financial regulation and continues to provide expertise on issues like bank capital limits and bankers’ bonuses as the world’s leading powers seek ways to prevent future financial meltdowns.
Carney, a former Goldman Sachs banker who has impressed his peers with his market savvy, has broken with past patterns at the bank since taking over in 2008, making surprise appointments and keeping markets guessing on some of his policy moves during the global crisis.
The bank must also hire a replacement for deputy governor David Longworth who is also stepping down in April.
There is no single obvious candidate for the job, although it could be filled by one of Carney’s seven advisers.
Agathe Cote, for example, is seen as a rising star in the bank as is David Wolf, a former chief economist in Canada for Banc of America Securities - Merrill Lynch.
Reporting by Ka Yan Ng and Louise Egan; editing by Rob Wilson