WELLINGTON: New Zealand’s new central bank governor says the bank’s top priority would remain keeping inflation low and stable while supporting economic growth, as she pledges 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 characterised 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. — Reuters
