Bank of Canada Governor David Dodge has just announced that he will not be seeking a second term.
His term does not end until January 2008, but he decided to make his intentions known early so that the bank's board would have plenty of time to choose a successor, the central bank said in a statement.
Mr. Dodge could not immediately be reached for comment, but he will take questions Thursday at a scheduled news conference, after the release of the semi-annual Monetary Policy Report, a spokesman for the bank said.
The news release did not say what he plans to do next. But it did say that the bank's board of directors plans to form a search committee for a new governor, and the selection process is expected to be completed by the fall.
The governor has informed the Minister of Finance and the central bank's board of his decision.
Mr. Dodge, 63, has had a long career in government.
Before he was named governor of the central bank in February, 2001, he held positions such as deputy minister of finance and deputy minister of health. He also spent time in academia.
Mr. Dodge is probably the most colourful central-bank governor Canada has had in recent history. But despite his reputation as a bit of a loose cannon, he has also won the respect of Bay Street, economists and his international colleagues.
Rumours have been swirling for months about his departure. It was widely assumed he would not seek a second term, mainly because he is 63, and because — according to the gossip mill and never confirmed by Mr. Dodge himself — he has wanted to extend his thinking beyond monetary policy.
Indeed, his frequent forays outside the traditional realm of central banking have suggested as much. He comments frequently on education, training, corporate responsibility, public-private partnerships, the environment and even daycare.
The rumour mill has been equally active about who will replace Mr. Dodge. In the past, most governors have been named from within the central bank's ranks, but Mr. Dodge was an anomaly.
If tradition is resumed, senior deputy governor Paul Jenkins would obviously be at the top of the list. But since outsiders are now considered viable candidates, names such as Don Drummond (chief economist at Toronto-Dominion Bank), Kevin Lynch (chief clerk of the privy council) and Stephen Poloz (chief economist at Export Development Canada) have bubbled to the fore.
© The Globe and Mail
