Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Dr Alan Bollard New RBNZ Governor

Thu, 22 Aug 2002

Data Flash (New Zealand)
Treasury Secretary Dr Alan Bollard New RBNZ Governor

Finance Minister Cullen announced today that the Secretary to the Treasury, Dr Alan Bollard, will be appointed the next Reserve Bank Governor. Dr Bollard was nominated by the non-executive directors of the Reserve Bank Board and the nomination has been accepted by the government.

Confirmation of Dr Bollard's appointment will be subject to the conclusion of a contract of employment and to the negotiation of a new Policy Targets Agreement (PTA), which includes the definition of the inflation target band. The duration of this process is not certain at this stage, but we expect Dr Bollard to take up his new position by early October at the latest.

The government wants monetary policy outcomes to move closer to those of Australia. Dr Cullen stated that he will not change the top of the 0-3% target range, but did not rule out changing the bottom of the band. Dr Cullen had criticised the RBNZ earlier this year for implicitly having elevated the 1.5% mid-point of the target band to a medium-term policy target.

Regardless of the ultimate wording of the PTA and specification of the target range, it is our assessment that Dr Bollard will adopt a pragmatic approach to the running of monetary policy. That fits with our view that there will be no further RBNZ rate increases from the current level of 5.75% during this cycle. Growth momentum is already slowing and CPI inflation is expected to track down from currently 2.8% to 2% over the next year - an outlook that does not require any additional monetary policy pressure.

Curriculum Vitae - Dr Alan Bollard

Age: 51

Tertiary qualifications: BA in economics and mathematics, an MA (Hons) in economics, and a PhD in economics, from Auckland University.

1987-1994 Director of the New Zealand Institute of Economic Research (advising governments and companies on a wide range of applied economic issues).

1994 -1998 Chairman of the New Zealand Commerce Commission (the country's anti-trust and fair trading regulatory authority).

1998 - 2002 Secretary to the Treasury (government department that manages the Crown's finances and is the Government's principal economic adviser).

Ulf Schoefisch, Chief Economist, New Zealand


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Ongoing Monetary Tightening
The Monetary Policy Committee today increased the Official Cash Rate (OCR) to 3 percent from 2.5 percent. The Committee agreed it remains appropriate to continue to tighten monetary conditions... More>>



Statistics: Weekly Earnings Rise As More In Full-time Employment

Median weekly earnings from wages and salaries rose by 8.8 percent to $1,189 in the year to the June 2022 quarter, Stats NZ said today... More>>



Bell Gully: Uncertainty Ahead With New Unconscionable Conduct Legislation

new prohibition against ‘unconscionable conduct’ in trade is one of a number of changes to the Fair Trading Act 1986 that come into force from 16 August 2022. The new prohibition may have wide-ranging implications for many businesses... More>>


Electricity Authority: Imposes Interim Restrictions On Very Large Electricity Contracts

Consumers of electricity will be protected from potentially paying more than they should due to the impact of very large electricity contracts on wholesale prices, under urgent changes announced today by the Electricity Authority... More>>


Westpac: Economic Overview, August 2022 – Pushing Through

The New Zealand economy faces some lean growth in the year ahead as households’ budgets are squeezed, according to Westpac’s latest Economic Overview... More>>


Kiwi Group Holdings: Fisher Funds Acquires Kiwi Wealth Business

Kiwi Group Holdings Limited (KGHL) today announced the sale of Kiwi Wealth to Fisher Funds for NZ$310 million... More>>