The Board of the Reserve Bank today met to initiate procedures by which a new Governor will be appointed.

The chairman of the Non-Executive Directors Committee of the Board, Mr Bill Wilson said: “Under section 40 of the Act, a Governor is appointed ‘by the Minister (the Treasurer) on the recommendation of the Board’. The Board has today initiated the process by which it will prepare its recommendation to the Treasurer.

“These procedures will, of course, be confidential. The Board’s recommendation to the Minister will not be made public and any announcements will come from the Minister. I can, however, say that the post will be advertised, both within New Zealand and offshore.

“In terms of deadlines, the Act says that an appointment must be made within six months of the Treasurer appointing an Acting Governor.

“In the meantime, it is important to note that Dr Carr has assured me that the conduct of monetary policy is continuing as usual. Dr Carr has told me that the Act and the Policy Targets Agreement are sufficiently precise that for the Bank, in terms of monetary policy, nothing has changed. The Bank’s next Monetary Policy Statement is scheduled for 15 May. Dr Carr has assured me that work on the preparation of that document is continuing uninterrupted,” Mr Wilson concluded.

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