The following is excerpted from the 3 May 2013 article by The Star.
Once they recovered from the surprise, business leaders and economists had kind words, and some gentle advice, for new Bank of Canada Governor Stephen Poloz.
The chief debate as news of his appointment spread was whether Poloz should be termed an “outsider” at the Bank of Canada, given his lengthy service at the bank prior to taking over Export Development Canada.
The expected choice had been deputy governor Tiff Macklem.
“I’m a little surprised, and pleasantly surprised,” said Jayson Myers, chief executive of Canadian Manufacturers and Exporters…
“He is an excellent communicator, and I think that’s a very large part of the job,” said Myers. “He’s a good economist and that’s important, but the main job here is to maintain confidence among the investor community. Communication is a huge part of that.”
That means listening as well, he said.
“Economic theory is nothing without grounding in the reality of business and the reality of finance. It’s extremely important for Steve to continue to consult with businesses.”
Poloz’s background at the Export Development Canada will also be crucial in the international arena, where there’s a danger of trade being stifled by a lack of credit, Myers said…
CAW economist Jim Stanford praised the idea of hiring an outsider for the top job, noting this was the third time that the deputy governor has been passed over…
Stanford credited Carney with unconventional thinking including announcing that interest rates would stay low. “Hopefully, Mr. Poloz brings the same willingness to innovate to the job, because we need it.”…
Poloz is well aware of the impact of the high Canadian dollar on exports, Stanford said…
While the Canadian dollar weakened slightly after news of the appointment, Craig Alexander, chief economist at the TD Bank Financial Group, said any roiling in currency and bond markets will likely dissipate after traders learn more about the new governor.
Craig Wright, RBC Financial Group chief economist, added that’s Poloz is not technically an outsider, since his background includes 14 years in senior roles at the Bank of Canada…
But C.D. Howe Institute research vice president Finn Poschmann said Poloz’s background as head of Export Development Canada could signal a shift in the central bank’s focus from monetary policy alone to encompass broader issues.
He added that the governor’s familiarity with export roadblocks may hint at the government’s concern about the impact of a strong loonie on commodity exports.
This article is available in its entirety at: http://www.thestar.com/business/economy/2013/05/02/bank_of_canada_outsider_poloz_draws_rave_reviews_from_business.html.