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The Bank of Canada has appointed HEC Montréal economics professor Nicolas Vincent to its governing council, where he will serve a two-year term as the central bank’s first non-executive deputy governor.

The governing council is responsible for setting Canadian interest rates and overseeing the bank’s financial system stability efforts. Mr. Vincent’s appointment brings the six-person group back to full strength, after the retirement of long-serving deputy governor Tim Lane in September. Mr. Vincent will start on March 13.

The non-executive role was created last year. Unlike the governor, senior deputy governor and three other deputy governors, the position is part time and has a shorter two-year term, with the possibility of a one-year extension.

When the central bank announced the change last year, it said it was looking to bring “fresh and diverse perspectives” to the governing council, and that it would consider candidates from “a broad range of disciplines and backgrounds.” The bank has opted for an academic economist – a common background for deputy governors.

“I am delighted that Nicolas Vincent is joining the bank’s governing council,” Governor Tiff Macklem said in a statement. “He is an accomplished scholar and teacher, with deep expertise in macro and microeconomic research in areas such as inflation and price dispersion, firm dynamics, inequality, house prices and household finance.”

Mr. Vincent teaches in the department of applied economics at HEC Montréal, the University of Montreal’s business school. He is also co-chair of the business cycles and financial markets research group at CIRANO, a research centre that brings together researchers from across Montreal. He holds a PhD in economics from Northwestern University.

Mr. Vincent will join the bank at a pivotal moment. The Canadian economy is slowing in response to the bank’s aggressive interest-rate hikes, but inflation remains far above the bank’s target. After raising rates seven times last year, bank officials have signalled they’re getting close to a pause. The next rate decision is on Jan. 25.

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