Adrian Orr appointed as new RBNZ Governor

The New Zealand Finance Minister Grant Robertson announced Monday that he has appointed the current Superannuation Fund chief executive Adrian Orr as the new Reserve Bank Governor. Following the announcement, the New Zealand dollar rallied against the Greenback to trade at 0.6890 levels, as Orr is an accomplished economist.

Robertson selected Orr after the Reserve Bank’s Board unanimously agreed that the latter can guide the central bank in an exemplary manner to perform its wider role in the New Zealand economy.

Orr will take the leadership role on March 27, 2018, and will serve for a period of five years. After the previous Governor Graeme Wheeler stepped down in September, Grant Spencer took over as the acting Governor.

 

RNZ

Commenting on the Orr’s appointment, Robertson said

“I’m delighted the Board has been able to secure a Governor with such a strong track record of delivery and public service. Orr has the technical and leadership qualities required to be Governor and CEO of the Reserve Bank. Further, I consider that he has the skills necessary to successfully lead the Bank through a period of change.”

While making the announcement Robertson thanked the acting Governor Spencer for his stewardship and wished him the best in his future ventures. Neil Quigley, the chairman of the Reserve Bank of New Zealand, said

“Adrian Orr has a significant breadth of knowledge across central and commercial banking, economics, financial markets, and regulation”.

The appointment comes at a time when the new government wants to include its employment objective in the RBNZ’s mandate. Analysts believe that such a mandate could keep the interest rates lower. Thus, the market is definitely waiting for Orr’s opinion in this matter.

The Kiwi dollar has been bearish for the past two months due to uncertainties caused by the general election. Further, the broad strengthening of the Greenback, due to tax reforms in the US, has also kept the New Zealand dollar on a decline. So, the market would be closely monitoring the statements of the RBNZ in the days to come.

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