OTTAWA – Canada’s financial community is mulling over the slightly surprising appointment of Stephen Poloz as the next governor of the Bank of Canada.
Poloz, who has been the head of the Economic Development Canada, takes over from Mark Carney who leaves at the end of the month to become governor of the Bank of England.
Many observers had expected Carney’s deputy Tiff Macklem to get the post and the appointment of Poloz caused a ripple on the markets.
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“Stephen Poloz and I have known each other for many years. We worked together closely at the Bank of Canada – in fact, we started in the same division. During my time at Finance, particularly through the financial crisis, I also worked with Steve in his role at EDC. I have the utmost respect for Steve as an economist, and as a public servant. I look forward to working with him as a colleague on the Bank’s Governing Council as we carry out the important mandate of the Bank of Canada,” Macklem said in a statement sent to Global News.
The Canadian dollar dipped two-10ths of a cent lower to 99 cents US in after-market trading.
READ MORE: Who is Stephen Poloz?
Bank of Montreal chief economist Doug Porter says given Poloz’s experience championing the export sector, the markets may be concerned about the new governor favouring a looser approach if it causes the loonie to weaken.
Scotiabank economist Derek Holt says the Harper government might have appointed Poloz to give a bit of a nod to exporters in light of the high dollar.
With files from Global News
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