- New RBNZ Governor has an assured first public outing
- Anna Breman repeats a laser focus on low and stable inflation
- Wants greater transparency on rate decision making, communication
- RBNZ has a strong global reputation
Greater transparency and a focus on low and stable inflation were the key messages from the Reserve Bank's new governor, Anna Breman, in a confident and comfortable first public appearance.
She appeared before Parliament's Finance and Expenditure select committee, alongside the newly appointed chair Roger Finlay, for the annual review of the central bank's performance.
On only her second day in the job she was not in a position to comment on what Labour's finance spokesperson Barbara Edmonds called a "tumultuous year", in which former governor Adrian Orr abruptly resigned, the stand-in governor Christian Hawkesby resigned when he failed to get the top job, and the RBNZ board chair Neil Quigley resigned for handling of the aftermath of Orr's departure.
Breman essentially reprised her comments when she was unveiled as the new governor in October.
"Key focus for the bank under my leadership will be to stay laser focused on our core mandate, and that is low and stable inflation, stable financial system, and a safe and efficient payments system, and importantly that means ensuring cash is available to all New Zealanders."
"As we head in 2026 transparency and accountability and clear communication will be our focus to maintain trust and credibility with New Zealanders."
How the rate committee voted
Breman said she would discuss with members of the rate setting Monetary Policy Committee the prospect of publicly revealing individual voting decisions.
However, the Labour Party MPs suggested having various views of the seven members of the committee made public might be confusing, and leave members open to lobbying.
"It is imperative to have a good discussion, that people are allowed diversity of thought, it's not just they are allowed it but should be encouraged," Breman said, adding whatever approach was taken would be based on what was good and appropriate for New Zealand.
RBNZ governor Anna Breman. Photo: RNZ / Mark Papalii
She said that could also include in the economic forecasting ahead of decisions, with people being asked to take contrary views to test all options.
Asked about her view on the bond buying policy the RBNZ adopted to pump $53 billion into the economy during the pandemic, she said it was a mechanism that had been used by other central banks around the world at the time.
"This is an unusual monetary policy tool, you want to keep it in the overall toolbox , being very mindful of having the OCR (official cash rate) as your primary monetary policy instrument."
Meanwhile, RBNZ officials said the recent restructuring to meet its reduced budget resulted in 68 redundancies at a cost of $2.6m.
Chairman Finlay said the RBNZ would soon release its decisions on the amount of capital banks should hold.
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