Incoming Reserve Bank governor Anna Breman has signalled a shift toward greater transparency and clearer communication following a turbulent period that saw the departure of two governors and a chair.
Appearing before Parliament’s Finance and Expenditure Select Committee on her second day in the role, the Swedish economist acknowledged that the bank had faced “a challenging environment, both globally and internally”, but said its mandate to maintain low and stable inflation remained central to its work.
She said: “The key focus for the bank under my leadership will be to stay laser focused on our core mandate – that is low and stable inflation, a stable financial system and a safe and efficient payment system. Importantly, that includes ensuring that cash is available to all New Zealanders as we head into 2026.”
Breman said transparency and accountability would be central to restoring trust in the institution, noting: “Transparency, accountability and clear communication will be our focus to maintain trust and credibility with New Zealanders.
“The Reserve Bank ranks high in international rankings of transparency, but there is more to be done.”
Her appointment comes after an extended period of leadership instability, beginning with Adrian Orr’s resignation in March after failing to secure a budget of more than $1bn to expand RBNZ operations. His departure was initially described as “a personal decision”, leading to criticism of how the bank communicated the circumstances.
The subsequent departure of chair Neil Quigley and interim governor Christian Hawkesby raised further questions about internal culture and leadership.
Newly appointed chair Rodger Finlay rejected suggestions of systemic issues, saying: “To lose two governors and a chair is indeed very unusual, but each case was totally different.”
He told the committee that the bank valued diverse views in its decision-making processes. He said he did not see “group-think” emerging within the senior leadership team and added: “I’ve watched with great pride the reshaping of our senior leadership team. They are all very talented professionals. I don’t see any group-think. I see really strong debate.”
Breman said she was confident about fostering robust internal discussions, drawing on her experience as deputy governor of Sweden’s Riksbank.
She said: “I’ve given a speech where I discussed the risk of group-think in central banking, so I feel very comfortable that I will be able to encourage a good discussion both in terms of the financial stability mandate, but also in terms of the monetary policy mandate. Research clearly shows that the monetary policy decisions are better made when they’re done by a committee where there is diversity of thought.”
Finlay also confirmed that the outcome of the Reserve Bank’s capital requirements review would be released before Christmas.
The prudential capital rules determine the level of reserves banks must hold to withstand a 1-in-200-year economic shock.
Critics argue the settings are among the most conservative globally, limiting competition and economic growth.
Finlay indicated change is likely, saying: “I don’t think I’m giving away too many secrets to say that we believe, as a board who will be making this decision, that our new capital settings will enhance competition.”