- New Zealand aims to hire its first female central bank governor
- The appointment is intended to bolster confidence in the Reserve Bank of New Zealand (RBNZ) following recent leadership issues
New Zealand will appoint a woman as the first female governor of its central bank after a time of leadership woes at the Reserve Bank of New Zealand (RBNZ). The new governor is said to be a foreigner, although his name is not yet given.
Finance Minister Nicola Willis will make the announcement of the appointment imminently, following a worldwide search to find a replacement for departed governor Adrian Orr, who quit in March.
The new governor is likely to take up the role at the end of the year and will not be involved in next month's rate decision on October 8.
The appointment is made during times of economic stress, such as a 0.9 percent dip in the second quarter, making chances of interest rate discussions even higher.
While internal applicants like acting governor Christian Hawkesby and Auckland economics professor Prasanna Gai were in the picture, media have reported that Toni Gravelle, deputy governor at the Bank of Canada, is now in pole position.
As head of the RBNZ, the governor will chair the Monetary Policy Committee, which sets interest rates to maintain inflation at the 2 percent midpoint of the 1–3 percent target range.
The appointment of a woman and foreign-born governor is a gesture towards diversity and new times at the RBNZ, which has been leader in embracing inflation targeting but laggard in embracing diversity in senior leadership.
The appointment is viewed by the analysts as a means of restoring credibility, tightening governance, and steering the central bank through chronic economic challenges.
