Two deputy governors exit as markets watch the next move on interest rates
Two departures from the Bank of Canada’s governing council this year leave the central bank’s core decision‑making body facing a significant reshuffle just as borrowers await clarity on the rate path.
Deputy governor Rhys Mendes is set to leave his post on April 10 to relocate to Toronto with his family. Deputy governor Sharon Kozicki, meanwhile, is scheduled to retire on July 15, the Bank said.
Both sit on the seven‑member governing council that sets the policy rate and oversees financial‑stability decisions that flow directly into mortgage pricing and credit conditions.
Doug Porter of Bank of Montreal says geopolitical uncertainty and climbing Government of Canada yields are weighing on housing demand. He expects the Bank of Canada to hold rates despite market speculation around hikes.https://t.co/0YxXVyfCnM
— Canadian Mortgage Professional Magazine (@CMPmagazine) March 20, 2026
What Mendes and Kozicki brought to the table
Mendes, appointed deputy governor in 2023, oversaw the Bank’s analysis of international economic developments and served as its G7 and G20 deputy.
Prior to that, he served as assistant deputy minister for economic policy at the Department of Finance and led work on the 2021 renewal of the inflation‑targeting agreement with Ottawa.
Governor Tiff Macklem said the institution has “greatly benefited from Rhys’s leadership and expertise on the global stage.”
Mendes has been “instrumental in shaping the policy agenda for Canada’s G7 Presidency last year, and for strengthening cooperation among central banks in support of economic welfare and financial stability domestically and abroad,” Macklem said.
“This work has initiated changes that will continue to influence policy in the years ahead.”
Kozicki, who joined the Bank in 2006 and became deputy governor in 2021, has been responsible for analysis of domestic economic developments after a career that included senior roles at the US Federal Reserve.
Macklem thanked her for “exceptional service and unwavering commitment to rigorous policymaking that brings research, analysis and policy together.”
Her “keen insights and wealth of knowledge have been invaluable in navigating the challenges facing monetary policy amid the pandemic fallout, rising geopolitical tensions and shifting global trade dynamics,” he said.
A changing council at a delicate moment for mortgages
The Bank’s governing council carries the responsibility for keeping inflation near its 2% target while maintaining financial‑system stability, a balance that has driven the policy rate down to 2.25% after a series of cuts since mid‑2025.
Economists expect the policy rate to remain around current levels through 2026, offering relative stability for mortgage holders, though such projections remain conditional on trade tensions and growth risks.
The Bank said it would run an internal recruitment process to fill the roles. In recent speeches, Mendes said the central bank has been exploring new ways to measure core inflation, while Kozicki warned that supply shocks could force central banks to raise rates even in a soft economy.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
