Dr Anna Breman will be the first female and non-New Zealander governor in RBNZ's history
New Zealand has made history with the appointment of Dr Anna Breman as the country's new Reserve Bank governor, marking the first time a woman and a non-New Zealander has held this economic position in the institution's 91-year history. The Swedish economist, currently serving as first deputy governor of the Sveriges Riksbank (the oldest central bank in the world), will begin her five-year term on Dec. 1.
Finance Minister Nicola Willis announced the appointment Wednesday, describing Breman as having "an impressive blend of technical expertise and organisational leadership experience." The appointment concludes an extensive international search process that began following the abrupt resignation of former governor Adrian Orr in March.
A comprehensive global search process
The recruitment process looked at over 300 candidates worldwide. Willis said the criteria applied were enterprise leadership, technical credentials, stakeholder engagement experience, personal resilience, and cultural capability.
A list of 10 international and domestic candidates was drawn up. It included a mix of individuals in academia, government, financial and regulatory institutions, and central bank leadership. Four were shortlisted for interviews with board members, with Willis confirming the nomination of the board.
Breman will start on Dec. 1. Current Governor Christian Hawkesby has resigned, but will continue in the role until Nov. 30 while supporting Dr Breman in her transition. Hawkesby has previously mentioned that he had also applied for the role.
In his resignation letter, Hawkesby noted he was providing “more than the contractual 2-months notice” specified in his employment agreement to provide clarity and transparency through the change.
Breman said she was “deeply honoured” to be appointed governor of RBNZ.
“The hospitality of New Zealanders is well known, but I’m still overwhelmed by the warmth and kindness that I’ve been shown during my time here,” Breman said in the press conference.
First remarks as incoming governor
Breman said that she would not be commenting on current monetary policy, but offered a lot of praise for the Reserve Bank as an institution.
She also stated that the last few years have been “tough for all central banks,” and that New Zealand is feeling much of the same pain.
“After the COVID pandemic and after Russia’s illegal invasion of Ukraine, inflation surged,” Breman said.
“We have all been reminded of how harmful and hurtful high inflation is to households and firms, and to our economies. Now, inflation is lower, but the global environment is still challenging. We are facing geopolitical tensions and trade tensions that weigh on the New Zealand economy, as well as on many other economies.”
She also said that the Reserve Bank is an “excellent institution” that ranks highly in international rankings of transparency. However, she noted that there is still work to be done in this regard, and so “transparency, accountability, and clear communication” will be among her key priorities.
“We will stay laser-focused on delivering on low and stable inflation,” she said.
“[The Reserve Bank] is known globally for being the first to adopt inflation targeting, but is also known for its highly skilled staff. They are dedicated, loyal, they know how important the institution is to the New Zealand economy, and they work hard to achieve the mandate set out in the Reserve Bank Act.”
