Prime Highlights: 

Michelle Alexopoulos has been appointed as the Bank of Canada’s new external deputy governor, effective March 17, 2025. 

Alexopoulos, a University of Toronto economics professor, will serve in this role on a part-time basis. 

This position was created in 2023 to bring diverse perspectives to the central bank’s policy-making process. 

Key Background: 

The Bank of Canada has appointed Michelle Alexopoulos as its new external deputy governor. The announcement, made in a news release on February 11, 2025, confirmed that Alexopoulos will begin her two-year term on March 17, 2025. This new role is a part-time position, which will allow Alexopoulos to continue her academic duties as a professor of economics at the University of Toronto. 

The creation of the external deputy governor position in 2023 aims to bring fresh perspectives and diverse insights to the central bank’s policy-making process. As the second individual to be appointed to this position, Alexopoulos follows in the footsteps of Nicolas Vincent, who was appointed in 2023 and had his term extended to 2026. Alexopoulos’s appointment marks a significant step in the Bank of Canada’s ongoing effort to incorporate a broader range of viewpoints into its decision-making framework. 

A distinguished academic, Alexopoulos holds a PhD in economics from Northwestern University. She has served as the president of the Canadian Economics Association and has made significant contributions to the field of economics throughout her career. Her appointment to this prestigious role is seen as an opportunity to enrich the Bank of Canada’s policy discussions, drawing on her extensive experience in both academic and practical economic matters. 

The external deputy governor will be involved in a variety of activities, including contributing to key decisions on monetary policy, and helping the bank navigate economic challenges facing the country. This strategic position is designed to bolster the Bank’s ability to adapt to evolving economic conditions and ensure that its decisions reflect a wide array of perspectives. 

The appointment of Michelle Alexopoulos further highlights the Bank of Canada’s commitment to bringing expertise from various sectors to its leadership team. With her background and experience, Alexopoulos is poised to play an important role in shaping the country’s economic landscape. This appointment is anticipated to have a positive impact on the central bank’s decision-making process, as the inclusion of external perspectives plays an increasingly important role in ensuring the ongoing effectiveness of the institution.