RBNZ board yet to recommend temporary governor to minister

[WELLINGTON] New Zealand Finance Minister Nicola Willis has yet to receive a recommendation from the Reserve Bank of New Zealand (RBNZ) Board on a temporary governor to replace Adrian Orr, her office said.

“The Minister looks forward to receiving the Reserve Bank Board’s recommendation for the appointment of a temporary governor,” her spokesperson said on Thursday (Mar 27) in Wellington in response to questions about the likely timing of an announcement. “A decision on the appointment will be made as soon as practicable following this, and not before Apr 1.”

After Orr’s surprise resignation on Mar 5, both Willis and the RBNZ said his deputy, Christian Hawkesby, would be acting governor until Mar 31, suggesting a decision on a temporary governor would be announced around that time.

The Reserve Bank Act states the board must make a recommendation within 28 days of the office of the governor becoming vacant, but Orr’s employment at the bank does not officially end until Mar 31. He has been on leave since announcing his resignation.

RBNZ board chairman Neil Quigley has not yet replied to Bloomberg’s questions about when he expects the recommendation to be made.

Once appointed, the temporary governor will occupy the position for six months, or longer if needed, until a permanent replacement is found. BLOOMBERG