Swedish economist Dr Anna Breman has been appointed as the new Governor of the Reserve Bank of New Zealand, Finance Minister Nicola Willis announced today.
Breman was the First Deputy Governor of Sweden’s central bank, and will lead the Reserve Bank of NZ for at least the next five years.
Breman was widely tipped as a top pick after Bloomberg News yesterday reported an unnamed source close to the process sources.
Breman begins her new role on December 1.
Acting Governor Christian Hawkesby’s term will be extended until November 30, and he will support a smooth transition. He will then depart from RBNZ.
Breman was nominated for the role by the Reserve Bank board following a worldwide search in which 300 potential candidates were identified.
Finance Minister Nicola Willis said she looked forward to working with Breman.
“Dr Breman comes to New Zealand with an impressive blend of technical skills and organisational leadership experience. She has been a Deputy Governor of Sweden’s Riksbank since 2019,” Willis said.
ANZ chief economist Sharon Zollner said she didn’t think the appointment would have any significant implications for monetary policy.
“We would have said that about almost any appointee,” she said.
“The RBNZ’s remit, charter and MPC [Monetary Policy Committee] code of conduct prescribe the framework, and ultimately, the data will decide where the OCR goes.”
The committee structure also meant the Governor was only one vote at the table, she said.
The Governor only votes when the Committee cannot reach a consensus; although in the event of a tie, the Governor has a casting vote.
“Past transitions from one Governor to the next have been relatively seamless from a monetary policy implementation perspective, and we would expect this one to be no different,” Zollner said.
Financial markets were unmoved by the announcement.
The RBNZ board welcomed the appointment of a new Governor following a robust and extensive recruitment process.
“The board was pleased with the quality [of] candidates who were attracted to the role, indicating the RBNZ’s strong reputation domestically and internationally,” RBNZ board deputy chairman Rodger Finlay said.
“The board is grateful for Christian’s ongoing leadership and commitment to RBNZ. We are very fortunate to have had him step into the role of governor during a transformative time for RBNZ.
“We respect his decision to resign from RBNZ when the new Governor is in post and thank him for his continued commitment to RBNZ’s people and its important work.”
Breman is married and has two children. She previously lived in central Stockholm.
She will earn a substantial remuneration package as Reserve Bank Governor.
Adrian Orr was paid $804,802 for the 2024 financial year.
The naming of the new Governor follows a tumultuous period for the RBNZ.
Orr resigned abruptly in March following a dispute with the minister and the board over funding.
The subsequent fallout from Orr’s departure resulted in the resignation of the chairman, Neil Quigley, last month.
His replacement is also due to be named in the coming weeks.
Since March, stability in the bank’s management team has been provided by Christian Hawkesby, who had been the Deputy Governor stepping into the acting role.
Hawkesby’s continuation in the role in the meantime will include the upcoming Official Cash Rate call on October 8.
He has indicated that he did apply for the Governor role.
Other local contenders were believed to include former Treasury chief economist Dominick Stevens and former RBNZ chief economist John McDermott, who now heads up think tank Motu.
Monetary Policy Committee member Prasanna Gai had also been tipped as a possible candidate.
Others who had been mentioned as possible contenders included David Ramsden from the Bank of England and Guy Debelle, an Australian economist who is the former Deputy Governor of the Reserve Bank of Australia.
An early frontrunner, Canadian Toni Gravelle, Deputy Governor at the Bank of Canada, had said he was “no longer in the running”.
Liam Dann is business editor-at-large for the New Zealand Herald. He is a senior writer and columnist, and also presents and produces videos and podcasts. He joined the Herald in 2003.