New Reserve Bank governor appointed

By Francesca Mold

Treasury Secretary Dr Alan Bollard has been appointed the country's new Reserve Bank governor.

Finance Minister Michael Cullen this morning announced the decision to appoint Dr Bollard to the position formerly held by Don Brash who resigned as governor in April so he could stand for the National party at the election.

Dr Bollard was nominated for the role by the non-executive directors of the Reserve Bank. The nomination was accepted by the Government.

Dr Bollard's appointment is subject to agreement on details of his employment contract and to the negotiation of a new Policy Targets Agreement - the agreement between the governor and the Finance Minister over how monetary policy will be run.

The Government has indicated it wants monetary policy outcomes to move closer to those of Australia.

Dr Bollard has been Secretary to the Treasury since February 1998.

Before that, he was New Zealand Commerce Commission chairman and director of the New Zealand Institute of Economic Research. Dr Bollard has also worked as an economist in Britain and the South Pacific.

In a press statement, Dr Cullen said he was pleased with the appointment.

"Dr Bollard has been enormously successful in changing the culture of the Treasury into a more open and outward looking organisation and was always a pleasure to work with."

The Reserve Bank governor is appointed by the Finance Minister for a term of five years.