Anna Breman announced as new Reserve Bank governor

The government has named the first woman to be Governor of the Reserve Bank in its 91-year history.

She is Dr Anna Breman, who has been the Deputy Governor of Sweden's central bank, the Riksbank, since 2019.

Much attention has focused on who would assume the governor position, given its importance - and the rocky relationship the government had with previous governor, Adrian Orr.

The Reserve Bank identified 300 candidates for governor in a worldwide search before whittling it to 10 and then a four-person shortlist before settling on Breman.

Announcing the decision on Wednesday, Finance Minister Nicola Willis told reporters the new governor "comes to New Zealand with an impressive blend of technical skills and organisational leadership experience".

"She holds a PhD in Economics from the Stockholm School of Economics and has previously been group chief economist at Swedbank, a leading Swedish commercial bank. She has also worked at the Swedish Ministry of Finance, the World Bank and as an academic economist in the United States."

Willis told reporters the criteria they looked at included leadership, technical credentials, stakeholder engagement experience, personal resilience and cultural capability.

Breman said the last 10 years had been tough for central banks facing first Covid, then the Russian invasion of Ukraine and rising inflation.

"The last few years have been tough for central banks. After the Covid pandemic and after Russia's illegal invasion of Ukraine, inflation surged.

"We have all been reminded how harmful and hurtful high inflation is to households and firms, to our economies. Now inflation is lower but the global environment is still challenging.

"We are facing geo-political tensions and trade tensions which weigh on the New Zealand economy and other economies."

Breman said the Bank would remain "laser focused" on delivering to lower inflation.

"There are three main areas of responsibility - the first is price stability. We will stay laser focused on delivering low and stable inflation."

The other areas are supervision of the economic system and ensuring a safe and efficient payment system.

Breman told reporters she would not comment on monetary policy for now but said the Reserve Bank was held in high regard globally.

"The Reserve bank is an excellent institution - it is known globally for being first to adopt inflation targeting. But it is also known for its highly skilled staff.

"Staff 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.

"The Reserve Bank should and it will remain a source of strength and stability for the New Zealand economy."

She said she wanted to travel around the country to listen to people and communicate effectively. She said it was important to be present and available.

"I will travel the country, meet regular households and students to hear what they are saying. I also have extensive experience in communicating."

Anticipating that Breman's status as the bank's first female governor would be raised at the press conference, Willis said she and Breman had discussed the matter on Tuesday.

"What we both agree, and I think have experienced in our careers, is that we only ever want to be selected for a role because we are the best candidate, not because of our gender," Willis said.

"However, it is also the case that it certainly makes a difference when young women and girls can see that there is no office that cannot be occupied by a woman. And I am glad that my daughters will be raised in a time where they can see that the governor of the Reserve Bank can be a man or a woman."

Breman also said it was important that people looked at her formal credentials.

"I do have experience in central banking, academia, in the financial sector. But I can tell you on a personal note that when I told my eldest daughter I had been offered this position she was so happy for me, and that made me really happy. Because to her it was very special that I was offered the position and that I did want to take the position," she said.

"So in that respect, like the minister stressed, it is nice for younger people to see that it's possible."

Labour's finance spokesperson Barbara Edmonds said Breman had an impressive background and she looked forward to engaging with her.

"There are some big challenges ahead for New Zealand and the governor plays an important role protecting and promoting the stability of New Zealand's financial system in an increasingly volatile world. I wish her the best in the new role."

The RBNZ Board said in a statement it was pleased with the quality of candidates it had surveyed and has welcomed the appointment of a new Governor following a robust and extensive recruitment process.

It also revealed that interim Reserve Bank governor Christian Hawkesby will help with the transition to Breman but will then leave the Reserve Bank.

RBNZ board deputy chair Rodger Finlay said: "Anna's experience spans central banking, academia and financial markets. She has strong technical knowledge within monetary policy, financial stability and payments systems after several years at the Executive Board at the Riksbank and an extensive international experience."

Christian Hawkesby will remain as interim governor until 30 November and will then help with the transition.

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."

Hawkesby said it was important to provide space for the new governor to succeed.

"I am fully committed to supporting Anna and leading the RBNZ through this remaining period."

Willis said Hawkesby had done an "admirable" job.

Breman takes over as the head of RBNZ after what has been a tumultuous period.

Hawkesby has been in the role since March after Orr's sudden resignation.

Orr quit abruptly after a dispute with the Finance Minister Nicola Willis.

Reserve Bank chair Neil Quigley resigned in the aftermath of the Orr resignation, after nine years in the role.

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