(Bloomberg) — New Zealand needs to find a new central bank governor this year after Adrian Orr unexpectedly quit with three years remaining in his term.
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Finance Minister Nicola Willis will make the decision based on a recommendation from the Reserve Bank board. She has ample time as the legislation under which the RBNZ operates allows for the appointment of a temporary governor for at least six months and longer if needed.
While Deputy Governor Christian Hawkesby has stepped into an acting role until March 31, and will be favored to take the temporary role thereafter, there is no guarantee an internal candidate will replace Orr. The four most recent governors — stretching back to 1988 — have all been external appointments.
While the governor chairs the Monetary Policy Committee that makes interest rate decisions, the job is much broader than that. The governor is essentially the chief executive of a significant crown entity that regulates banks and insurers, distributes cash and provides payment and settlement systems.
“The governor’s job is one of running a large business with multiple divisions and responsibilities,” said Sean Keane, chief Asia Pacific strategist for JB Drax Honore. “Economic analysis and understanding is only one of the qualifications needed to be RBNZ Governor.”
Following are some potential contenders:
Christian Hawkesby
Hawkesby joined the RBNZ in 2019 to head the economics, financial markets and banking unit. He had worked previously at fund manager Harbour Asset Management, including head of fixed income and economics, and for the Bank of England, where he held several roles over nine years including head of market intelligence. Hawkesby was promoted to deputy governor and head of financial stability at the RBNZ in early 2022.
Karen Silk
Silk joined the RBNZ in 2022 as an assistant governor after a lengthy career with Westpac Banking Corp. in both New Zealand and Australia. That included roles as general manager of institutional and business banking and chief executive of the New Zealand branch. At the RBNZ she heads the economics, financial and banking unit.
John McDermott
A former assistant governor, McDermott left the RBNZ in early 2019 after an almost 12-year career as chief economist. He is currently executive director at Motu, a Wellington-based economic and public policy research institute. Prior to joining the RBNZ in 2007 he was chief New Zealand economist at ANZ Bank.
