By Lucy Craymer and Renju Jose
WELLINGTON, Dec 2 (Reuters) – New Zealand’s new central bank governor said on Tuesday the bank’s top priority would remain keeping inflation low and stable while supporting economic growth, as she pledged greater transparency around the bank’s monetary policy decisions.
Anna Breman, who took the helm of the Reserve Bank of New Zealand on Monday, told a parliamentary committee that maintaining price stability was critical to protect low-income families.
“The core mandate is to keep inflation low and stable, taking (into) consideration, the overall performance of the economy,” Breman said. “We have to remember that high inflation hurts everyone but it particularly hurts households with low incomes.”
Breman, who was previously the First Deputy Governor of Sweden’s Riksbank, fills a gap left by the surprise resignation of Adrian Orr in March. Christian Hawkesby was appointed Governor for a six-month term.
Breman’s tenure begins at a time when New Zealand’s economy remains weak, inflation at 3% is currently at the top of the central bank’s target range and unemployment is at a nine-year high.
“Key for the bank, under my leadership, would be to stay laser focused on our government mandate, and that is low and stable inflation, a stable financial system and a safe and efficient payment system,” she told the committee as part of a review of the central bank over the past year.
Breman also said that the country will face a global environment characterized by uncertainties, which will mean it will be very important to have a strong international network.
As the bank heads into 2026, “transparency, accountability and clear communication” will be the central bank’s focus, she added.
Economists and markets want to see the central bank release more information about how the wider monetary policy committee thinks and to release how each of the members votes. Currently, only the vote is released.
Breman said this was something she would discuss with the Monetary Policy Committee in due course but she believed it was important to have differing views when making decisions.
“In the central bank, it is imperative to have a good discussion; that people are allowed diversity of thought,” Breman said.
Breman is the first female governor of New Zealand’s central bank and also the first foreign appointee in modern history.
She told the committee she would be meeting with the central bank’s Maori advisor on Wednesday and was committed to learning more about the culture and the language.
(Reporting by Lucy Craymer in Wellington and Renju Jose in Sydney; Editing by Lincoln Feast)
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