Anna Breman Appointed as New Reserve Bank Governor – First Female in 91 Years

The government has officially appointed Dr. Anna Breman as the new Governor of the Reserve Bank of New Zealand (RBNZ), marking a historic milestone as she becomes the first woman to hold this position in the bank’s 91-year history. This decision signals a new era of leadership and direction for New Zealand’s central bank.

Who is Dr. Anna Breman?

Dr. Anna Breman brings a wealth of experience in central banking, finance, and economics. She has been the Deputy Governor of Sweden’s central bank, the Riksbank, since 2019, where she played a critical role in monetary policy and financial stability. Her international experience spans across the World Bank, the Swedish Ministry of Finance, academia in the United States, and a key role as Group Chief Economist at Swedbank, a leading Swedish commercial bank.

The appointment of Dr. Breman followed an extensive and competitive selection process. According to the Reserve Bank Board, over 300 candidates were initially considered worldwide. This pool was narrowed down to 10, then to a four-person shortlist before Dr. Breman emerged as the final choice. This robust process underscores the importance of the role in shaping New Zealand’s financial and economic future.

Announcing the appointment, Finance Minister Nicola Willis highlighted Dr. Breman’s “impressive blend of technical skills and organizational leadership experience.” Willis emphasized that these qualities made Breman the ideal candidate to lead the bank through a complex global economic environment.

Dr. Breman’s appointment is not just significant for her credentials but also for its historic nature. She is the first woman to serve as Governor of the Reserve Bank since its establishment. Finance Minister Willis acknowledged the milestone, noting that it serves as an inspiration for young women and girls to pursue leadership roles in traditionally male-dominated fields like finance and economics.

However, both Willis and Breman stressed that selection was based solely on merit, with Breman stating, “I only ever want to be selected because I am the best candidate, not because of my gender.” Nonetheless, this milestone symbolizes progress and inclusivity in New Zealand’s financial leadership.

In her first address as Governor-designate, Dr. Breman outlined her priorities for the Reserve Bank. She emphasized the three main areas of responsibility for the institution:

• Price Stability: Maintaining low and stable inflation remains her top focus. She reiterated the harmful effects of high inflation on households, businesses, and the wider economy.
• Financial System Supervision: Ensuring a safe and resilient banking and financial system to protect depositors and the economy at large.
• Efficient Payment Systems: Guaranteeing a secure and effective payment infrastructure to support economic growth and innovation.

Dr. Breman pledged to keep the Reserve Bank “laser-focused” on delivering low and stable inflation while also managing the broader challenges facing the New Zealand economy, including geopolitical tensions, global trade disruptions, and post-pandemic recovery.

During her speech, Breman noted the tough environment central banks face globally. The aftermath of COVID-19, the impact of Russia’s invasion of Ukraine, and rising global inflation have created unprecedented challenges. Although inflation has eased somewhat, ongoing geopolitical and trade tensions continue to weigh heavily on economies, including New Zealand’s.

Despite these challenges, Breman expressed confidence in the Reserve Bank’s ability to navigate the complexities of the global economy, pointing to the institution’s reputation for innovation and expertise.

Dr. Breman praised the Reserve Bank of New Zealand for being a pioneer in inflation targeting and for its highly skilled and dedicated staff. She underscored that the RBNZ remains a cornerstone of strength and stability for the country’s economy.

“The Reserve Bank is known globally for its excellence,” Breman said. “Staff are dedicated and loyal, and they understand the critical role the bank plays in the New Zealand economy.”

Breman’s appointment comes after a period of turbulence at the Reserve Bank. Christian Hawkesby has been serving as interim Governor since March following the abrupt resignation of Adrian Orr. The RBNZ Board expressed gratitude to Hawkesby for his leadership during this transitional period and confirmed he will support Breman through the handover before stepping down.

The Board also noted the resignation of long-time Reserve Bank Chair Neil Quigley, who left after nine years in the role. These leadership changes highlight the importance of stable and effective governance at the institution moving forward.

According to the Reserve Bank’s most recent annual report, the Governor’s salary for the 2023-24 year was $804,802. The Remuneration Authority sets the pay for this position, ensuring it reflects the high level of responsibility and expertise required.

Dr. Breman emphasized the importance of communication and accessibility in her role as Governor. She stated her intention to travel around New Zealand to meet with households, students, and stakeholders, listening to their concerns and explaining the Bank’s policies in clear terms. This approach aims to build trust and transparency with the public.

Political leaders and financial experts have welcomed Dr. Breman’s appointment. Labour’s Finance Spokesperson, Barbara Edmonds, praised Breman’s impressive background and expressed confidence in her ability to address the challenges ahead. The RBNZ Board also reiterated its satisfaction with the quality of candidates considered and the robustness of the recruitment process.

As Dr. Anna Breman takes over as Governor of the Reserve Bank of New Zealand, she faces the dual challenge of steering the economy through global uncertainties while ensuring the Bank maintains its credibility and effectiveness at home. Her appointment represents both a break from the past and a continuation of the Bank’s legacy of innovation and stability.

Her leadership will be closely watched not only in New Zealand but also by international observers eager to see how one of the world’s most respected central banks navigates the evolving economic landscape.