The Reserve Bank’s new governor, Anna Breman, emphasised the importance of increasing transparency and maintaining a consistent focus on achieving low and stable inflation.
Breman made her first public appearance before the Finance and Expenditure Committee for the Reserve Bank’s routine annual review, accompanied by the Reserve Bank’s newly appointed board chair, Rodger Finlay.
While she was not in a position to respond to questions about the Reserve Bank’s difficult year, she shared an overview of the strategy she intends to adopt moving forward.
“Key focus for the bank under my leadership will be to stay laser focused on our core mandate, and that is low and stable inflation, stable financial system, and a safe and efficient payments system, and importantly that means ensuring cash is available to all New Zealanders,” Breman said.
“As we head in 2026 transparency and accountability and clear communication will be our focus to maintain trust and credibility with New Zealanders.”
She said she planned to discuss with fellow Monetary Policy Committee members whether their individual perspectives on monetary policy, including decisions on setting the Official Cash Rate (OCR), should be disclosed publicly.
Breman said any modifications to the communication of monetary policy decisions should suit the specific context and needs of New Zealand.
When asked about the bank’s bond-buying policy that injected $53 billion into the economy during the pandemic, she described it as a measure also employed by other central banks worldwide at that time.
“This is an unusual monetary policy tool; you want to keep it in the overall toolbox, being very mindful of having the OCR (official cash rate) as your primary monetary policy instrument.”