8.6 C
New York
Wednesday, June 23, 2021
Home Canadian News Tiff Macklem to lead the Bank of Canada

Tiff Macklem to lead the Bank of Canada

Finance Minister Bill Morneau has appointed Tiff Macklem, the former senior deputy governor of the Bank of Canada, to take over the top job at the central bank.

Macklem is currently the dean of the Rotman School of Management in Toronto, but had spent decades with the Bank of Canada before starting that appointment. 

Macklem began his career at the bank in 1984. He was widely expected to win the contest for bank governor in 2013, but was beaten out by Stephen Poloz, who was then CEO of Export Development Canada.

Poloz’s term ends June 2. 

Time of financial uncertainty

In selecting Macklem, the government passed over Poloz’s top deputy, Carolyn Wilkins, the first woman to serve as the bank’s senior deputy governor and would have been the first woman to serve as governor.

Wilkins was viewed by many as the front-runner for the position and would have provided some continuity at the country’s central bank as it navigates the uncertainty of a pandemic-driven recession.

The transition to new leadership comes as millions of Canadians have signed up for government aid and companies big and small are relying on federally backed wage subsidies to survive.

In the past months, Poloz and Morneau have appeared at several joint news conferences to show a co-ordinated approach on monetary and fiscal policy to deal with the economic fallout of the pandemic and global oil shocks.

Morneau has announced more than $250 billion in direct financial aid, credit support and tax deferrals to help offset the impact of the COVID-19 pandemic.

Record-low interest rates

Poloz has cut interest rates to a record low of 0.25 per cent, committed the central bank to buying billions in government bonds each week until the economy is in recovery and taken steps to strengthen liquidity in the banking sector.

The person who replaces Poloz will be facing an economy that, according to the bank’s own projections, could shrink by 30 per cent or more in the second quarter.

Tiff Macklem, then Bank of Canada deputy governor, appears at a Commons finance committee on Parliament Hill in Ottawa on Tuesday, April 23, 2013. Macklem was named governor on Friday. (Sean Kilpatrick/Canadian Press)

The next government will have practically no room to use interest rate cuts to help the economy. Poloz has already taken the unprecedented step — in Canada at least — of directly buying government bonds.

That limited flexibility is compounded by the rapid use of the federal government’s fiscal firepower to put a financial floor under Canadian households and businesses.

The parliamentary budget officer said it’s likely the federal deficit for the year will hit $252 billion as a result of the COVID-19 pandemic, and could go even higher if emergency measures remain in place longer than planned.

WATCH: Morneau announces Tiff Macklem as Governor of the Bank of Canada

Federal Finance Minister Bill Morneau spoke with reporters on Parliament Hill on Friday 1:49

Source link

Today news
Today News 1 runs four of the western GTA’s most influential media websites, offering news, food, lifestyle and entertainment coverage for millions to the Golden Horseshoe and GTA regions. The independently-run, online news source was founded in 2019 and specializes in everything from breaking news to food and restaurant, arts and entertainment and lifestyle coverage.


Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Construction begins on huge new Alberta solar farm, Amazon to purchase power

Amazon announced Wednesday it will purchase power from a massive new solar farm in Alberta, marking the e-commerce giant's second renewable energy investment...

Drake Bell pleads guilty to child endangerment charges in Cleveland

Drake Bell, the former star of the popular Nickelodeon show Drake & Josh, pleaded guilty on Wednesday to charges relating to a girl who...

Lego eyes making bricks out of recycled plastic bottles

Danish toymaker Lego has presented its first building bricks made out of recycled drinks bottles — an experimental project that if successful could...

Elton John adds dates to final tour, including stops in Toronto and Vancouver

Elton John has announced the final dates for his farewell tour, which includes stops at big stadiums in the U.S., as well as...

Recent Comments