Dr Anna Breman with Finance Minister Nicola Willis. Photo: RNZ / Mark Papalii
Picking a new governor from the other side of the world is "quite a risky call", a former Reserve Bank economist says.
But Dr Anna Breman - who has been deputy governor of Sweden's central bank, the Riksbank - has a "low bar" to clear in light of the "chaos" at the end of her predecessor, Adrian Orr's, term.
Orr's sudden departure earlier this year was originally put down to "personal" reasons, according to RBNZ chair Neil Quigley, but it later emerged to be over the the bank's funding.
Quigley later resigned, and Finance Minister Nicola Willis was highly critical of the RBNZ's processes around Orr's departure.
Former RBNZ economist Michael Reddell told RNZ's Morning Report officials "clearly had to go outside the Reserve Bank after the chaos… in the last few months" rather than hire from within.
Willis at this week's announcement. Photo: RNZ / Mark Papalii
"But I think it's unfortunate that they've ended up choosing to go overseas to somebody who really has no exposure to New Zealand in the past, no networks here," he said.
"She could prove to be an excellent call. Time will tell.
"But [she is] somebody who doesn't have the instinctive understanding of the New Zealand economy and its challenges, and also comes from a central bank that doesn't do bank regulation - and a big part of what the Reserve Bank does these days is regulation of banks and other financial institutions. So it's a risky call, I think."
Meanwhile, former Reserve Bank governor Don Brash is optimistic a new appointee to the role will bring transparent communication, but says monetary policy isn't likely to change much
Adrian Orr. Photo: RNZ / Dom Thomas
Riddell said the RBNZ had a "pretty poor track record" of hiring from within for the top job, saying the last time it happened was 1982.
"I think this occasionally definitely needed to go beyond the bank, but it does raise more questions about New Zealand and the way in which we've been able to develop capability ourselves.
Breman - who beat 300 other candidates - starts her new role in December.
"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," Willis said on Wednesday.
"She has also worked at the Swedish Ministry of Finance, the World Bank and as an academic economist in the United States."
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