Latest / Early Edition with Ryan Bridge / Cameron Bagrie: Economist on Anna Breman being appointed the new Reserve Bank Governor

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Cameron Bagrie: Economist on Anna Breman being appointed the new Reserve Bank Governor · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: So, after scanning three hundred candidates, the Reserve Bank has
• 0:03
  Speaker 1: finally set on a New York governor. Doctor Anna Breman Bremen,
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  Speaker 1: who has been deputy governor of Sweden's Reex Bank since
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  Speaker 1: twenty nineteen, will step into the role from December. She's
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  Speaker 1: the first woman to be named as governor in the
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  Speaker 1: bank's ninety one year history. Have it listen to this
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  Speaker 1: their ser bank should and it will remain a source
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  Speaker 1: of strength and stability.
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  Speaker 2: For the New Zealand economy.
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  Speaker 1: And together with the board and with staff, we will
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  Speaker 1: achieve this by focusing on our core mandate. Cameron Bakery,
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  Speaker 1: independent economist, is with me. Now, thanks for your time
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  Speaker 1: this morning, Cameron, Good morning.
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  Speaker 2: Oh, good morning.
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  Speaker 1: Right, what do we know about her?
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  Speaker 2: Oh, she's got a pretty extensive CV, she's got central
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  Speaker 2: bank experience, she's worked diversities. She clicks pretty well all
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  Speaker 2: the boxes that you want of a credible central bank governs.
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  Speaker 2: So let's go on.
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  Speaker 1: Do you think this is the kind of job that
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  Speaker 1: people want?
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  Speaker 2: Well, if the media reports are correct, there are an
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  Speaker 2: awful lot of cvs that were thrown in a few
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  Speaker 2: pretty high credibly candidates in New Zealand had a crack
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  Speaker 2: at the job as well and best person one.
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  Speaker 1: What do you think her interest in taking the job
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  Speaker 1: in New Zealanders?
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  Speaker 2: I guess if you have yes, she was repeated for
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  Speaker 2: your depitty head well next layer down of management at
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  Speaker 2: the risk bank, so I think most people work for
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  Speaker 2: those of the jobs. Ultimately, you wanted the top job
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  Speaker 2: at a central bank. Obviously New Zealand's a way way
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  Speaker 2: away from where she sort of was. But yeah, the
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  Speaker 2: reserve banks had a pretty esteemed institution. Obviously they've got
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  Speaker 2: knocked around in the past of the six months in
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  Speaker 2: regard to what's going on, but if you go back,
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  Speaker 2: they have a look at the Reserve Bank over the
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  Speaker 2: past of the thirty to thirty five years. In that
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  Speaker 2: year we've had low inflation, so they've been highly credible.
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  Speaker 2: They've done a very good job overall.
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  Speaker 1: Cameron, how bigger mess does she have to clean up here?
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  Speaker 1: What should be her priorities?
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  Speaker 2: Miss? I think is the wrong sort of word. But
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  Speaker 2: if you look at obviously at the epy center of
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  Speaker 2: the central Bank, they sort of got three board functions
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  Speaker 2: price stability. We don't like high inflation, we're like low inflation.
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  Speaker 2: We've learned that lesson very sevidly over the past a
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  Speaker 2: few years, and she's come out and obviously fired a
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  Speaker 2: couple of shots in regard that they're going to be
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  Speaker 2: focused on inflation and the center of any central bank
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  Speaker 2: is your credibility. So she's been straight out of the
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  Speaker 2: blocks in regard to say these are what the focus
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  Speaker 2: is going to be. She'll be focused on prudential supervision
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  Speaker 2: and of course oversight of the pavement system. Now are
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  Speaker 2: we going to see any groundbreaking changes in regard to
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  Speaker 2: the operation of the Reserve Bank? I think the answer
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  Speaker 2: is known. You know, the Reserve Bank, there's more than
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  Speaker 2: the governor. The governor does not decide where interest rates are.
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  Speaker 2: All the oco is going to be. It's decided buy
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  Speaker 2: a committee. There's a very transparent process where we're going
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  Speaker 2: to see some changes. The Reserve Bank is perhaps within culture.
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  Speaker 2: So what's the space going forward?
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  Speaker 1: Okay, you don't happen to know how well Sweden is
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  Speaker 1: doing economically, I mean, what does this tell us anything
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  Speaker 1: about the way she might approach things here?
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  Speaker 2: Well, central bank, sweet the Central Bank had incredibly lower
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  Speaker 2: interest rates and they were quite pleased to get back
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  Speaker 2: into positive interest rate ciatry. But once again, she's going
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  Speaker 2: to be laser focus on the key priorities because the
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  Speaker 2: eb center of any central bank is credibility, and that's
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  Speaker 2: credibility in the framework, that's credibility in the governor. It's
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  Speaker 2: credibility in the governance. And when you lose a governor
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  Speaker 2: and you lose a cheer within six months, you're going
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  Speaker 2: to take a bit of a reputational hat. So the
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  Speaker 2: Reserve Bank needs to address some of those reputational aspects
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  Speaker 2: and I think it'll be ye not too fanom the
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  Speaker 2: word the term because the government gets on throwing and back.
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  Speaker 2: I think it's going to be getting back to good
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  Speaker 2: old fashioned basics.
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  Speaker 1: Thank you, yeah, Cameron Bekery. Always appreciate your thoughts. Thanks
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  Speaker 1: so much for your time. For more from Early Edition
• 4:06
  Speaker 1: with Ryan Bridge, listen live to News Talks it'd be
• 4:09
  Speaker 1: from five am weekdays, or follow the podcast on iHeartRadio.