The Reserve Bank’s board says it is working on choosing a temporary governor who it will recommend to the Minister of Finance Nicola Willis soon.
Former Governor Adrian Orr legally left the bank on Monday, although he has been absent since the announcement of his resignation earlier in March.
The Reserve Bank’s Board now has 28 days to recommend a temporary governor who can serve for up to nine months. Deputy Governor Christian Hawkesby is currently Acting-Governor and can continue in that role until the end of the 28 day period.
In a statement, the Board said it was “in the process of preparing a recommendation” to the Minister and would be sending it soon. Chairman Neil Quiqley wouldn’t comment on whether Hawkesby would be nominated.
The Reserve Bank is continuing, and even launching significant policy work despite not having its full leadership structure in place. The board of directors approved a review of bank regulatory capital requirements in response to criticisms aired at Parliament's banking inquiry.
Hawkesby will also preside over the next Monetary Policy Committee (MPC) meeting, which convenes this week to begin assessing the next Official Cash Rate review on April 9.
It is usually a seven-person group made up of four Reserve Bank representatives and three external economists, but with Orr absent it will be just six members. In the unlikely event of a split vote, Hawkesby would get to make the final decision as the acting-MPC Chairman.
The Reserve Bank Board also said planning was underway to begin the process of appointing a permanent Governor for a full five-year term. This process will need to be wrapped up within the next nine months, suggesting a new governor could begin in January 2026.
It will look at both local and international candidates. Some local names that have been bandied about include MPC member Prasanna Gai, former Reserve Bank leaders Geoff Bascand and John McDermott, and Treasury Chief Economist Dominick Stephens.
Hawkesby and Assistant Governor Karen Silk are possible internal candidates for the temporary and permanent Governor positions, although Willis’ dissatisfaction with the bank’s performance may lead her to prefer an external candidate.
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