With the pandemic creating some of the worst economic conditions on record, the Bank of Canada governor Steven Poloz had to enact measures to help soften the blow of mass business closures and massive unemployement. This included dropping the overnight lending rate to 0.25 per cent and a bond purchasing effort to prop up the federal government’s economic stimulus programmes now at over $250 billion in direct financial aid, along with measures like tax deferrals.
Poloz tenure however ends June 2, an the search had begun for a new head of Canada’s central bank.
There had been two front-runners, Tiff Macklem, and Carolyn Willkins. Macklin was a formerly number two at the central bank, before leaving in 2014 to become dean of the Rotman School of Management at the University of Toronto. Carolyn Wilkins is the current senior deputy governor at the central bank.
Prime Minister Trudeau, who has long said he wanted gender equality in top positions, gave the nod however to Macklem.
Macklem also headed a panel on sustainable finance which reported last year that cited how climate change could affect the economy and inflation and thus in turn, monetary policy at the central bank.
In spite of these unique times and challenges, Macklem is not expected to make any immediate or significant changes such as introducing a negative rate, but rather indicating he is satisfied to keep the 0.25 rate so as not to introduce additional “disruptive” forces in a time of uncertainty and disruption.
Additional information – sources
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