Carney Wants Short Transition to New Bank Governor

Mark Carney wants a short transition between him and the new Bank of Canada Governor before he leaves to head the Bank of England later this year.

Carney said his “commitment” is “to ensure that there is a seamless transition to the next governor,” during testimony to the House of Commons finance committee in Ottawa today.

Canada is looking for a new central bank chief after Carney’s surprise announcement in November that he will take over the London-based institution on July 1, and vacate his Canadian post a month before that. Economists surveyed by Bloomberg have predicted the most likely replacement is Senior Deputy Governor Tiff Macklem, who made his regular trip with Carney to today’s hearing.

“My intention is to serve to June 1, the ideal obviously will be that there is a short transition, not too long, but there is a short overlap to assist that individual in taking charge,” Carney said. “I am highly confident that the institution will be well served by the next governor, whoever he or she is.”

The new governor will be appointed by the federal cabinet, based on a recommendation from the outside directors on the Bank of Canada’s board. Finance Minister Jim Flaherty said in a Jan. 16 statement he will interview “qualified candidates.”

The job has a seven-year renewable term and the salary range for last year was C$431,800 ($430,800) to C$507,900. The job posting called for “unquestioned technical competence” in monetary policy, and the last three governors have had a doctorate in economics. It also says the position requires “a highly developed understanding of the financial sector” as well as “exceptional communications skills” and ability in both English and French.

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