TORONTO (Reuters) - Canada on Friday named Tiff Macklem as the new Bank of Canada governor, replacing Stephen Poloz, who ends his seven-year term next month.
Market reaction: CAD/
MARK CHANDLER, HEAD OF CANADIAN FIXED INCOME AND CURRENCY STRATEGY AT RBC CAPITAL MARKETS
“The appointment of Tiff Macklem “speaks to the continuity of the organization. He has extensive background within the bank, leading up to his role as senior deputy governor under (former Bank of Canada Governor Mark) Carney.”
“He’ll do a good job of reflecting the traditional views of the Bank. He showed himself very well over the crisis period under Carney as someone who’s very smart and capable... He had a hands-on approach to a lot of the policies that were adopted under the last crisis. And many of those have been adopted this time around. That is a point in his favour.
“There’s no sense at all that he and (outgoing Governor Stephen Poloz) differ substantively.”
ANDREW KELVIN, CHIEF CANADA STRATEGIST AT TD SECURITIES,
“Mild surprise I guess. Tiff was the front-runner in 2013. I think he was on most people’s lists if they want beyond (Senior Deputy Governor Carolyn) Wilkins and (Jean) Boivin ... If people were surprised, it just wasn’t clear he had thrown his hat into the ring.”
“He was senior deputy governor previously. He was a prominent policymaker during the last crisis so he does have those crisis fighting credentials. He is extremely qualified and it will be interesting to see how his views on monetary policy have changed over the last seven years. We don’t know what his views are on negative interest rates. We don’t know if he is still as concerned about household leverage as he seemed to be when he was senior deputy under Mark Carney.”
SIMON HARVEY, FX MARKET ANALYST FOR MONEX EUROPE AND MONEX CANADA
“The appointment of Tim Macklem as Governor Poloz’s successor was surprising as his bid for the role went relatively under the radar compared to Jean Boivin and current Deputy Governor (Carolyn) Wilkins.”
“The currency markets is unfazed by the announcement, however, as the Bank is more than just the governor - something Poloz was keen to highlight in the last MPC announcement.”
“Additionally, Macklem’s experience post-financial crisis under (Mark) Carney means the bank is being left in secure hands. This is pivotal as the BoC is expected to navigate the exit of crisis-era policies and avoid situations similar to the taper tantrums seen over the last decade when balance sheets began to compress.”
ERIK NELSON, A CURRENCY STRATEGIST, AT WELLS FARGO IN NEW YORK
“Maybe somewhat of a surprise; we weren’t sure exactly whether or not he wanted the job and (Carolyn) Wilkins was maybe more of the obvious choice.”
“Looking back, he has got some crisis experience under (Mark) Carney. He has been in a policymaker role before so I think that’s a relative positive when we think about the current environment.”
“I think the big thing to focus on is his experience as a deputy governor and experience during a crisis which seem like two important check marks right now.”
Reporting by Fergal Smith; Editing by Denny Thomas
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