Reserve Bank Governor Alan Bollard says he won't seek a third term heading up New Zealand's central bank.
Speculation emerged last week that Bollard would step down, and today he confirmed he won't put his name forward for a third term when his current one ends on Sept. 25. He will focus his last eight months on the serious economic and financial challenges facing New Zealand, he said in a statement.
"As I noted last week, the bank is ready to respond to ongoing developments overseas, especially in Europe, the US and China, as well as domestically, particularly the Canterbury earthquakes," Bollard said. "The bank's expanded prudential regulatory responsibilities mean we will continue to introduce new prudential requirements this year, especially in the insurance and non-bank sectors."
Last week, Bollard identified rising interest rates and the Canterbury rebuild as weighing on future monetary policy reviews, as rising bank funding costs push up retail rates independent of movements in the official cash rate.
Bollard is a previous secretary to the Treasury who was appointed as governor in September 2002, and had earlier led the Commerce Commission. He published a book last year on his experience as central bank governor during the global financial crisis.
Reserve Bank chairman Arthur Grimes said the board will search locally and abroad to find Bollard's successor.
Finance Minister Bill English will make the new appointment on the board's recommendation.