New Zealand on Wednesday named Swedish national Anna Breman its first female central bank governor. This follows a major shakeup at the bank amid criticism over its economic management.
Breman, who is currently the First Deputy Governor of Sweden’s central bank, the Riksbank, will take up her role at the Reserve Bank of New Zealand (RBNZ) on December 1.
“Dr Breman comes to New Zealand with an impressive blend of technical skills and organisational leadership experience,” New Zealand Finance Minister Nicola Willis told a press conference in Wellington.
Breman, 49, was nominated for the role by the RBNZ board following a worldwide search in which 300 potential candidates were identified, Willis said.
Milestone Appointment
Anna Breman is the first foreign national appointed to the role in its modern history. She is also New Zealand’s first female central bank governor. She will replace current RBNZ Governor Christian Hawkesby, who was appointed to the role for six months in April following the surprise resignation of former governor Adrian Orr. Hawkesby will also leave the bank and step down from the RBNZ’s monetary policy board.
The appointment of a foreigner to a governor role is not unheard of with the Bank of England appointing Canadian Mark Carney as governor in 2012.
New Zealand’s main opposition Labour Party also welcomed Breman’s appointment, with economics spokesperson Barbara Edmonds praising her “impressive background”.
Current Challenges
It is left to be seen how the new central bank Governor would defend the central bank’s independence from a critical government and restoring the reputational damage done by a deep economic downturn.
Breman’s confirmation comes just months after funding for the bank was significantly cut by the government, forcing a restructure with around 20% of its staff expected to be laid off.
Her first policy meeting will not be until February. Before that, the RBNZ conducts meetings in both October and November, for which markets are currently pricing a total of 58 basis points of rate cuts. The RBNZ is also reviewing bank capital requirements, following public criticism of changes announced in 2019 championed by Orr. Critics contend the regulations reduced availability of funds in the economy and led to extra costs for borrowers.
