The Reserve Bank (RBNZ) has filled a vacancy in its Monetary Policy Committee (MPC), which is responsible for mainly using interest rates to control inflation and employment.
Karen Silk, a long-time Westpac senior executive, will join the committee at a to-be-confirmed date “in coming months” when she takes up an Assistant Governor role - General Manager of Economics, Financial Markets and Banking.
Silk will fill the role previously held by Christian Hawkesby, who became Deputy Governor following Geoff Bascand’s resignation.
Like Hawkesby and Governor Adrian Orr, who both managed large investment funds before joining the RBNZ, Silk brings commercial experience to the MPC.
New team at the helm of monetary policy decisions
The RBNZ reiterated, Chief Economist Yuong Ha will be involved in the MPC’s next Official Cash Rate review and accompanying Monetary Policy Statement on February 23, ahead of his resignation taking effect in March.
So, the same group, minus Bascand, that has made monetary policy decisions throughout the pandemic, will be involved in the February decision.
It is unclear how different the seven-member committee will look come the next scheduled monetary policy review on April 13. In addition to uncertainty around start dates for Silk and the to-be-appointed new Chief Economist, terms of two of the MPC’s three external members (Bob Buckle and Peter Harris) expire in April.
Appointments (which could see Buckle and/or Harris have their terms renewed or extended) need to be made before April 13. The MPC must also always have at least two external members.
Silk's banking experience
Coming back to Silk, she leaves her role as General Manager of Westpac NZ’s Experience Hub to join the RBNZ.
Her previously held roles with Westpac NZ include: General Manager Institutional and Business Banking, CEO of Westpac’s NZ Branch covering financial markets and international operations, CEO of Westpac Life, and CEO of Westpac’s funds management arm, BTNZ.
Silk has also spent time in Australia, where she was Managing Director and Global Head of Debt/Debt Capital Markets for Westpac Institutional Bank.
Orr said Silk has experience in areas where the RBNZ has “significant projects underway”.
Furthermore, he said, “Karen is steeped in climate change and risk management, including co-chair of the Sustainable Finance Forum.”
New ‘Strategic Advisor to the Governor’ role created
Silk’s appointment completes recruitment of the RBNZ’s new Executive Leadership Team - the product of a restructure, which has seen a number of senior staff leave.
While everyone in the team (other than Orr) joined the RBNZ in 2019 or later, the RBNZ pointed out five of the eight roles are internal appointments.
It said a ninth role has also been added; a newly-created fixed term position, Strategic Advisor to the Governor.
The role will be filled by Nigel Prince, who has been the RBNZ’s Business Services Improvement Programme director for the past year, and “brings significant leadership and change experience from the public and private sectors”.
Below is a diagram of what the Executive Leadership Team looks like. Three of the MPC’s seven members are part of the team.
37 Comments
How was my comment racist? The governor advertises the fact that he is inclusive and cares about racial equality. He has a funny way of showing it. He employs very few Maori and his policies are proven to punish Maori the harshest. He needs to practice what he preaches and stop being such a hypocrite.
OK. Now your just ranting.
Not great by whose measure? Have you spoken to his employers? He is an extension of a global banking system. Don't Mix ur dislike of outcome/function with personal performance. For all you know the board love him.
Unaccountable? Right... Do people discuss your job performance in Internet chat rooms? He is probably the most scrutinised employee in the country after the pm.
What do you mean by same kind of people?
I'm going to give you some shocking news now. Brace for it... As far as race and gender are concerned, anyone starting thier career in the world of FS is on exactly the same level field. There is no secret pasty white male secret society...
And 100% he landed his role via commitment, hard work and careful career progression.
By defining race you are being racist. "..his policies are proven to punish Maori the harshest" This is an inaccurate statement, but falls into line with popular and politically correct dialogue. The real impact is 'his policies are proven to punish the lower socio-economic classes the harshest'. They are not just Maori. there are European, Pasifica, and Asians all impacted equally at the bottom. Racism is rampant in NZ and it is mostly used to curry political favour.
This is not directly related to the banking world, but interesting in terms of those in power. In NZ Parliament after the 2020 election:
Maori MPs = 20% , proportion of general population that are Maori = 16.5%
Asian MPs = 5%, proportion of general population that are Asian = 15%
Pacifica MPs = 8.3%, proportion of population that are Pacifica = 8%
LGBT+ MPs = 10%, proportion of population that identify as LGBT+ = 3.5%.
Based on these figures NZ needs to do more to raise the profile of the Asian Population in positions of power.
I see there's a nice proper balance of genders in the top 10: 5 women and 5 men (including Orr). The glass ceiling looks to have been truly broken at the top; pity about the rampant sexual assaults by male lawyers on female employees in major law firms (see today's Herald article).
https://www.nzherald.co.nz/nz/young-lawyers-and-students-disappointed-a…
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