30 Jan 2012

Reserve Bank Governor stepping down

6:25 pm on 30 January 2012

Reserve Bank Governor Alan Bollard is stepping down when his current term ends this September.

Dr Bollard was appointed in September 2002 and is in his second five-year term.

In a statement issued on Monday, Dr Bollard gave no reason for his decision to go.

But he said he will be focusing in his remaining eight months on serious economic and financial challenges facing New Zealand.

He said the Reserve Bank is ready to respond to developments overseas, especially in Europe, the United States and China, as well as to domestic challenges such as the Canterbury earthquakes.

Reserve Bank board chair Arthur Grimes, said the board will search in New Zealand and abroad to identify a successor to Dr Bollard.

The Governor is appointed by the Minister of Finance on the recommendation of the board.

Bollard performed well - economist says

NZ Institute of Economic Research principal economist Shamubeel Eaqub says the role of the governor has grown during Dr Bollard's time and now includes broad oversight of the financial sector, including the crippled finance firms.

He says Dr Bollard performed well in what was a difficult economic phase for the country.

During his Governorship, New Zealand battled a debt-fueled housing boom, the fallout from recession and the global financial crisis in 2008 and a series of devastating earthquakes in Christchurch.

And Claire Mathews of the Department of Finance, Banking and Property at Massey University told Checkpoint what stands out most is the fact that Dr Bollard has had a very difficult time as Reserve Bank Governor, because of what has been going on both in New Zealand and internationally.