New Zealand has appointed Swedish economist Anna Breman as the next Governor of the Reserve Bank of New Zealand (RBNZ), making her the first woman to hold the post in the bank’s history. The decision comes at a time of significant change for the central bank, which has faced heavy criticism over its handling of the economy in recent years.
Finance Minister Nicola Willis confirmed the appointment on Wednesday, announcing that Breman, currently First Deputy Governor of Sweden’s central bank, will begin her new role on 1 December.
“Dr Breman comes to New Zealand with an impressive blend of technical skills and organisational leadership experience,” Willis told a press conference in Wellington.
Breman, 49, praised the institution’s global reputation in her first comments following the announcement. “The Reserve Bank is an excellent institution: it’s known globally for being the first to develop inflation targeting,” she said. “Staff are dedicated, they are loyal. They know how important the institution is to New Zealand.”
Her appointment follows the abrupt departure of former governor Adrian Orr, who frequently clashed with the government over policy decisions and budget cuts. RBNZ’s board nominated Breman after a global recruitment process that considered 300 candidates.
Rodger Finlay, deputy chair of the RBNZ board, welcomed the decision, highlighting Breman’s expertise. “Anna’s experience spans central banking, academia and financial markets,” he said. “She has strong technical knowledge within monetary policy, financial stability and payments systems after several years at the Executive Board at the Riksbank and an extensive international experience.”
Breman’s appointment is historic in more ways than one. She is not only the first woman to become Governor of the RBNZ but also the first foreign national to take on the role in the bank’s modern era. New Zealand, which was the first self-governing country to grant women the vote 135 years ago and has had three female prime ministers, had never before appointed a woman as its central bank governor. Currently, Karen Silk serves as Assistant Governor.
“It certainly makes a difference when young women and girls can see that there is no office that cannot be occupied by a woman,” Willis said.
Breman will replace interim governor Christian Hawkesby, who stepped into the position for six months in April after Orr’s resignation. Hawkesby will also leave the central bank and step down from its monetary policy board.
Orr, known for his unconventional approach to policy, was criticised for acting too slowly to lower interest rates during a severe recession. “The Reserve Bank has found itself behind the curve over the last couple of years,” said Jarrod Kerr, chief economist at Kiwibank. “We hope we get some leadership that brings the Reserve Bank ahead of the curve, rather than being reactive. We would like a central bank to be a bit more proactive.”
Orr’s resignation followed disagreements with the government over deep budget cuts to the bank. Relations between the RBNZ and the centre-right administration have remained tense, with Prime Minister Christopher Luxon openly stating his views on how the bank should manage interest rates. The RBNZ’s chair also resigned in August amid criticism over Orr’s departure.
“We are opening a new chapter today, a new chapter in New Zealand’s history and a new chapter for Reserve Bank,” Willis said.
The main opposition Labour Party supported Breman’s appointment, with economics spokesperson Barbara Edmonds praising her “impressive background.”
Breman will face a series of challenges as she steps into the role, including navigating a strained relationship with the government, defending the central bank’s independence, and repairing its reputation following a deep economic downturn.
Her arrival comes just months after the government significantly reduced the RBNZ’s funding, forcing a major restructuring that is expected to result in about 20% of staff being laid off. Breman’s first policy meeting is scheduled for February, following meetings in October and November where markets are expecting a combined 58 basis points of interest rate cuts.
