Finance Minister Nicola Willis and the new Reserve Bank governor Dr Anna Breman. Photo: RNZ / Mark Papalii
Analysis - Anna Breman started her five-year journey as the new governor of the Reserve Bank with a confident Kia Ora, a commitment to transparency and communication with the broader public, and a bold statement that she has the credentials to do the job.
The rumours of a female overseas appointee proved to be correct, although no-one guessed from as far north as Sweden.
Her appointment marks a signal turn in the leadership of the central bank, rocked by the abrupt resignation of former governor, Adrian Orr, and then the drawn out revelations of why he had gone.
Challenges
Breman faces an array of challenges in taking what some might regard as something of a poisoned chalice, with the RBNZ's reputation as an inflation fighting bank and conduct of monetary policy during and after the pandemic severely tested.
The RBNZ's sometimes erratic signalling and communication of monetary policy has come in for stinging criticism from some.
So too has its apparent obstinate attitude on issues such as the amount of capital that banks should hold against financial crises, slow progress on open banking, its move into areas such as climate change effects, and ballooning staff numbers and costs.
The manner of the departure of Orr in March, and the performance of chair Neil Quigley in the disclosure of the reasons for the resignation called into question the governance by the RBNZ board.
Quigley's jump from the board before he was pushed by Finance Minister Nicola Willis, with a successor expected to be appointed by year's end, should allow for a fresh start.
Breman diplomatically emphasised the RBNZ's strong international reputation among central banks -- "an excellent institution" she dubbed it with high quality staff, from whom she is ready to learn but also lead.
Her initial comments about making low and stable inflation her "laser focus" are text book, her manner calm and assured.
The appointment of someone not from the male dominated local economic and business establishment will be like opening the windows to allow fresh air to blow through the RBNZ offices at number 2 The Terrace.
Independence
The RBNZ is by law an independent body, but admissions from Prime Minister Christopher Luxon that he has previously given them his view on where interest rates should be raised eyebrows if not question marks about interference.
Willis said she would adhere to rules of non-interference and Breman added her confidence in the RBNZ's independence.
And the minister has reaffirmed that the current policy targets agreement -- in essence the RBNZ's riding instructions from the government -- will continue unchanged, pointing to continuity of political expectations and policy priorities.
That should allow for a relatively seamless transition from the departing stand in governor Christian Hawkesby, who can be expected to resurface at a high level in the finance sector.
Finance Minister Nicola Willis and the new Reserve Bank governor Dr Anna Breman. Photo: RNZ / Mark Papalii
Who is Anna Breman ?
Breman has been the First Deputy Governor of the central bank of Sweden (Riksbank) since September 2022, elevated after being on its executive board as a Deputy Governor since 2019.
That has given her experience in all facets of decision-making of the central bank, including monetary policy, financial stability, and national payments systems.
She holds a PhD in Economics from the Stockholm School of Economics and has previously been group chief economist and global head of macro research at Swedbank. She has also worked at the Swedish Ministry of Finance, the World Bank and as a researcher at the University of Arizona.
Accordingly, she is well travelled and well qualified.
Having refrained from commenting on current monetary policy or whether she would "engineer a recession" as Adrian Orr openly vowed, Breman starts at the start of December, just days after the RBNZ's last monetary policy statement for the year.
A new year, a new governor, perhaps a new era.
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