New Zealand Prime Minister Christopher Luxon has stated that the country expects to appoint a new Reserve Bank governor within the coming weeks. Luxon addressed the matter on Monday, telling Newstalk ZB in Wellington that the selection process is well underway. “We’ve got a couple of candidates. We’re in a process at the moment,” he said, indicating that an announcement is imminent. The appointment will fill the vacancy left by Adrian Orr, who resigned in early March, three years before the end of his term.
Christian Hawkesby, Orr’s deputy, has been serving as interim governor and his temporary appointment is set to conclude on October 7. Hawkesby has reportedly applied for the permanent position. The Reserve Bank of New Zealand (RBNZ) is the central bank of New Zealand. It formulates and implements monetary policy to maintain price stability, promotes a sound and efficient financial system, and supplies banknotes.
The selection process is overseen by the RBNZ board, which makes recommendations to Finance Minister Nicola Willis. Luxon noted that this process is “well advanced,” despite the recent resignation of board chair Neil Quigley. Quigley stepped down following criticism of his handling of Orr’s departure, particularly concerning the transparency around the reasons for Orr’s exit. Initial reports cited personal reasons, but later information revealed a disagreement over a funding agreement with the government.
Luxon and Willis expressed dissatisfaction with the handling of the matter, emphasising the need for greater transparency. Willis stated she would have dismissed Quigley had he not resigned. Luxon, however, believes the RBNZ’s reputation has not been significantly damaged by these events. He stated that Quigley’s resignation was the right decision, preventing further potential reputational harm to the central bank.
