The Bank of Canada said Larry Schembri will become deputy governor as of Feb. 25, an internal promotion to its rate-setting panel while the government conducts a broader search to replace departing Governor Mark Carney.
Schembri, 55, has been adviser to Carney since 2010. He replaces Jean Boivin, who left in October to become associate deputy finance minister under Jim Flaherty.
“Larry’s expertise of monetary theory and policy in open economies, and profound understanding of the international monetary system make him an exceptional addition to Governing Council,” Carney said in a statement posted on the central bank’s website. “His dedicated efforts in recent years in support of the Bank’s financial stability function have contributed greatly, not only to the Bank, but also to the important work of the Financial Stability Board.”
The new deputy joins a governing council that has left borrowing costs unchanged for more than two years as it grapples with a recovery hampered by the global recession. Still, the Bank of Canada remains the only central bank among Group of Seven nations with a bias toward tightening.
Deputies are chosen by the bank’s board of outside directors. The job posting for applications said the winner should have management experience and “superior analytical and communications skills,” including competence in English and French, Canada’s official languages.
The bank’s directors will now focus on selecting a governor to replace Carney, a choice that must be ratified by the federal cabinet. The directors and government are looking at a broad pool of candidates beyond internal choices such as senior deputy Tiff Macklem, a person with knowledge of the process told Bloomberg News last month.
The history of finding deputies from inside the bank is mixed. Current members Agathe Cote and John Murray were promoted from within. Timothy Lane was named deputy governor six months after coming from the International Monetary Fund.
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