Reuters report on Anna Breman, the first woman, and first foreigner, to lead the Reserve Bank of New Zealand, takes office this week with a clear mission: restore credibility and stability after several turbulent years that damaged the central bank’s reputation and weighed on the economy.
Breman, previously deputy governor of Sweden’s Riksbank, replaces Adrian Orr, whose tenure was marked by clashes with the government, aggressive rate hikes, and, say some, a delayed pivot to easing, decisions many critics say deepened New Zealand’s economic slump. Orr’s departure followed tensions over funding cuts, leaving Christian Hawkesby as interim governor.
Breman has pledged to be “laser focused” on inflation and to rebuild trust with Finance Minister Nicola Willis and Treasury officials. She inherits an economy still fragile after the RBNZ cut the cash rate to a three-year low of 2.25% last week, while signalling the end of the easing cycle. Analysts say the pause gives her breathing room to assess whether the recovery is taking hold.
Beyond monetary policy, Breman must oversee a review of bank capital rules, help set up a new financial policy committee, and manage practical challenges at the RBNZ’s asbestos-affected Wellington headquarters.
This article was written by Eamonn Sheridan at investinglive.com.