December 06, 2019

Poloz to Step Down as Canada Central Bank Governor in June
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast.Stephen Poloz, who resisted this year’s global rush to cut interest rates, won’t seek a second term at the helm of the Bank of Canada when his mandate ends in June.Poloz informed the central bank’s board of directors and Finance Minister Bill Morneau of his decision, according to a statement Friday from the bank.“It has been a privilege to serve as the ninth Governor of the Bank of Canada,” Poloz, 64, said in the statement posted to the bank’s website. He called his job at the bank, which began in 2013, “the most fulfilling of my long career.”The governor is preparing to leave the central bank with its 1.75% benchmark interest rate among the highest in advanced economies. Poloz -- who was among the few central bankers to raise interest rates in 2017 and 2018 as the nation’s economy began to fully recover from the last recession -- has been reluctant to reverse course, citing a relatively robust expansion and concerns that lower borrowing costs could fuel the nation’s already high household debt levels.“The issue of course is we’re at a very delicate point in time for the Canadian economy,” Brian DePratto, senior economist at Toronto-Dominion Bank said by phone. “The Bank of Canada is balancing growth concerns versus financial stability concerns. Certainly they’ve been emphasizing the latter quite a bit in my view in the recent communication.”Since Poloz came to power, Canadian household debt has increased by more than half a trillion Canadian dollars and remains near record high levels as a share of disposable income, which will almost certainly act as a millstone for growth for years to come. Bank of Canada officials cited the nation’s economic resiliency in the face of global uncertainty when they defended their decision this week not to follow the Federal Reserve in cutting rates.Though Poloz wasn’t expected to stay for a second term, he had indicated it was an option. His decision to step down means replacing him becomes one of the first orders of business for Prime Minister Justin Trudeau, whose Liberal Party won a second term in government after a divisive election in October.Early front-runners include the governor’s chief deputy, Carolyn Wilkins, who would be the first woman to take the job. Wilkins would offer the smoothest transition, particularly given how Poloz has elevated her role of Senior Deputy Governor under his watch to one that is more prominent than usual for the job.Wilkins, 55, oversees the central bank’s strategic planning and economic research, is involved in high-level Group of 20 and Financial Stability Board meetings, and is overseeing the review of the central bank’s inflation mandate, which will be renewed in 2021. Wilkins also fills in for Poloz once a year as chair of the Governing Council -- the group of policy makers that decides on interest rates.Jean Boivin, the head of BlackRock Inc.’s research unit, is also being touted as a stronger contender. He was considered an economic whiz kid when Bank of England Governor Mark Carney, then Bank of Canada governor, recruited him from academia as an adviser a decade ago. Boivin, currently based in London, would be the first francophone to run the central bank.Another potential successor is Tiff Macklem, dean of the University of Toronto’s Rotman School of Management, who left the bank after a long tenure after he lost his bid for the top job at the central bank in 2013 to Poloz. Among other names circulating as potential candidates include Paul Beaudry, who joined the Bank of Canada earlier this year as deputy governor; Evan Siddall, head of Canada Mortgage and Housing Corp.; and Paul Rochon, the current deputy minister of finance.Poloz’s announcement comes amid a period of turnover atop the world’s major central banks. Christine Lagarde just replaced Mario Draghi as president of the European Central Bank, while Carney is set to step down from the Bank of England in January.Under Poloz’s watch, borrowing costs were kept near the lowest levels in the central bank’s eight-decade history. That ultimately kept the economy afloat long enough for one of the fastest increases in jobs and probably the largest accumulation of wealth in the nation’s history, as cheap money inflated the value of real estate and financial assets.By some measures, Poloz has been one of Canada’s most successful central bankers ever: the country is closer to a state of full employment and stable prices than at any time since the 1960s.But his efforts to return the economy to full health, where it’s not reliant on low interest rates, housing and debt, ultimately fell short as Canada grappled with the lingering effects of the last recession and wrestled with a litany of new headwinds including a once-in-a-generation collapse in commodity prices and the impacts of global trade tensions.\--With assistance from Cedric Sam.To contact the reporters on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net;Shelly Hagan in ottawa at shagan9@bloomberg.netTo contact the editors responsible for this story: Theophilos Argitis at targitis@bloomberg.net, Chris Fournier, Stephen WicaryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Related Stories
Latest News
Top news around the world
Coronavirus Disease

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.

Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

Around the World

Celebrity News

> Latest News in Media

Watch It
Chris Harrison Gave Dodgers Advance Screening of New 'Bachelorette' Debut | TMZ
October 28, 2020
L7nXHbwf5PU
Bella Hadid Shaves Her Horses | TMZ TV
October 28, 2020
DEcavU9GD_8
The Rock Tastes His Own Blood After Gym Injury, Gets Stitches to Close Gash | TMZ TV
October 28, 2020
AS5QxRNANqc
'Moulin Rouge!' Director Baz Luhrmann on Turning the Film into the Tony-Nominated Broadway Musical
October 28, 2020
pGE9efj6b2I
Lena Waithe, Yara Shahidi, and More Join Variety's #Represent Black Women Creators Roundtable
October 28, 2020
XTECBlX2cGs
The Women of 'Greys Anatomy' on How the Show Will Tackle the Coronavirus Pandemic
October 28, 2020
motAA7fFHmg
Serena Williams owes her marriage to Alexis Ohanian to Rome and rats | Page Six Celebrity News
October 28, 2020
bwL1Kwodtxc
Savannah Guthrie parlaying town hall moderator gig into new NBC deal | Page Six Celebrity News
October 28, 2020
Rx8rCGtb1cs
Olivia Culpo on what clothes Christian McCaffrey loves to see her in | Page Six News
October 27, 2020
1rj8Oy1Q9iM
"Bachelorette" vs. Yosef, Sniffing Dale's Pants & Hilton Moves In
October 29, 2020
MiSn-_5N1e8
Chrishell Stause Was Considered for "The Bachelorette" Years Ago | E! News
October 28, 2020
C4aeUL_3eYQ
Tamar Braxton Speaks Out About Her Suicide Attempt | E! News
October 28, 2020
MwAps2zJVW4
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
28
Oct
ENGLAND: Championship
Rotherham - Sheffield Wednesday
28
Oct
ENGLAND: Championship
Bournemouth - Bristol City
28
Oct
ENGLAND: Championship
Preston NE - Millwall
28
Oct
ENGLAND: Championship
Derby County - Cardiff City
28
Oct
ENGLAND: Championship
Birmingham - Huddersfield
28
Oct
ENGLAND: Championship
Luton - Nottingham Forest
27
Oct
ENGLAND: Championship
Swansea City - Stoke City
27
Oct
ENGLAND: Championship
Wycombe Wanderers - Watford
27
Oct
ENGLAND: Championship
Middlesbrough - Coventry
27
Oct
ENGLAND: Championship
Blackburn - Reading
27
Oct
ENGLAND: Championship
Brentford - Norwich City
27
Oct
ENGLAND: Championship
Barnsley - QPR
26
Oct
ITALY: Serie A
AC Milan - Roma
26
Oct
ENGLAND: Premier League
Burnley - Tottenham Hotspur
26
Oct
ENGLAND: Premier League
Brighton - West Bromwich Albion
26
Oct
GERMANY: Bundesliga
Bayer Leverkusen - Augsburg
26
Oct
SPAIN: La Liga
Levante - Celta Vigo
25
Oct
ENGLAND: Premier League
Arsenal - Leicester City
25
Oct
ITALY: Serie A
Juventus - Verona
25
Oct
ITALY: Serie A
Benevento - Napoli
25
Oct
ENGLAND: Premier League
Southampton - Everton
25
Oct
SPAIN: La Liga
Real Sociedad - Huesca
25
Oct
GERMANY: Bundesliga
Wolfsburg - Arminia Bielefeld
25
Oct
GERMANY: Bundesliga
Werder Bremen - Hoffenheim
25
Oct
ENGLAND: Premier League
Wolves - Newcastle United
25
Oct
SPAIN: La Liga
Getafe - Granada CF
25
Oct
ITALY: Serie A
Fiorentina - Udinese
25
Oct
SPAIN: La Liga
Cadiz - Villarreal
25
Oct
ITALY: Serie A
Parma - Spezia
25
Oct
SPAIN: La Liga
Real Valladolid - Alaves
25
Oct
ITALY: Serie A
Cagliari - Crotone
24
Oct
ENGLAND: Premier League
Manchester United - Chelsea
24
Oct
SPAIN: La Liga
Barcelona - Real Madrid
24
Oct
GERMANY: Bundesliga
Borussia Dortmund - Schalke
24
Oct
GERMANY: Bundesliga
Bayern Munich - Eintracht Frankfurt
24
Oct
ENGLAND: Premier League
Liverpool - Sheffield United
24
Oct
SPAIN: La Liga
Atletico Madrid - Real Betis
24
Oct
ENGLAND: Premier League
West Ham United - Manchester City
24
Oct
ITALY: Serie A
Genoa - Inter Milan
24
Oct
ENGLAND: Championship
Norwich City - Wycombe Wanderers
24
Oct
ITALY: Serie A
Lazio - Bologna
24
Oct
SPAIN: La Liga
Sevilla - Eibar
24
Oct
SPAIN: La Liga
Osasuna - Athletic Bilbao
21
Oct
CHAMPIONS LEAGUE: Group stage, Group A
Bayern Munich - Atletico Madrid
21
Oct
CHAMPIONS LEAGUE: Group stage, Group B
Inter Milan - Borussia Monchengladbach
21
Oct
CHAMPIONS LEAGUE: Group stage, Group D
Ajax - Liverpool
20
Oct
CHAMPIONS LEAGUE: Group stage, Group H
PSG - Manchester United
20
Oct
CHAMPIONS LEAGUE: Group stage, Group G
Barcelona - Ferencvaros
18
Oct
ITALY: Serie A
Roma - Benevento
18
Oct
ENGLAND: Premier League
Tottenham Hotspur - West Ham United
17
Oct
GERMANY: Bundesliga
Arminia Bielefeld - Bayern Munich
17
Oct
ENGLAND: Premier League
Newcastle United - Manchester United
17
Oct
SPAIN: La Liga
Getafe - Barcelona
17
Oct
ITALY: Serie A
Crotone - Juventus
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.