Deputy governor Sylvain Leduc will leave the Bank of Canada in late July, the central bank announced on Wednesday.
Leduc will return to San Francisco with his family to resume working at the Federal Reserve Bank of San Francisco.
“Sylvain has been a wonderful addition to governing council. We have benefitted from his policy expertise and his strong sense of teamwork,” says Stephen Poloz, Bank of Canada governor in a statement.
“Sylvain’s motivation and leadership has had a powerful impact on our researchers and on the bank’s capacity as a research institution. While we are sorry to say good-bye to this brilliant Canadian, we wish him every success in his future career in central banking.”
The process to appoint a new deputy governor will begin immediately. The board of directors will form a selection committee to conduct the search and selection process, with the assistance of global executive recruiting firm Boyden, the Bank of Canada says in a news release.
In a written commentary, Scotia Economics speculates Leduc will become the new head of the San Francisco Fed.
His departure “will not affect the regular conduct of monetary policy or carry market implications notwithstanding the fact that his contributions will be missed,” it states.
Scotia Economics also suggests that it will likely be mid-October by the time that the Bank of Canada is ready to name Leduc’s replacement.
“The Bank of Canada would therefore be down one member on the [governing council] for the next two decisions on July 11 and September 5,” it states.