The Globe and Mail reports in its Monday edition that in late August, the Bank of Canada announced the launch of its search for a new deputy governor. The Globe's David Parkinson writes that on the surface, this was no big surprise, veteran deputy Tim Lane had announced his retirement earlier in the summer, effective Sept. 22, creating a vacancy. An announcement about the search for his replacement would normally just be a bit of standard housekeeping.
However, Mr. Parkinson says the BOC's help-wanted ad came with a twist -- one that makes this the most noteworthy deputy governor search in decades. The BOC has decreed that this new deputy governor must be an outsider. Someone from a walk of professional life other than central banking. As well, the newcomer will not be burdened with the management duties of the other deputy governors. Instead, this "non-executive" deputy governor, will focus her or his attentions strictly on the core functions of the governing council: helping set monetary policy (chiefly, interest rates) with an eye on controlling inflation and fostering stability in the financial system. He or she will be limited to a two-year term, with an option for both parties to extend it to three.
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