Grant Spencer, a former Reserve Bank chief economist and head of financial markets will return to the bank as assistant governor/head of economics, the bank said today.

Mr Spencer, is currently head of strategy and business development at ANZ Bank.

This will be his third stint at the central bank, having starting in 1976. He became manager of the economics department in 1985 and later left for a stint at the International Monetary Fund. In 1993, he was appointed financial markets manager and left in 1995 for the ANZ.

Mr Spencer will take up his appointment at the end of the month and will be a key member of the bank's policy making and senior management teams, the bank said in a statement.

He will have responsibility for the economic forecasting and analysis that forms the basis for monetary policy decisions.