The Reserve Bank governor says the central bank is facing a challenge to maintain trust and confidence as an institution.
This follows two turbulent exits involving former governor Adrian Orr and, subsequently, board chair Neil Quigley.
Speaking at the Financial Services Council conference, Christian Hawkesby said the RBNZ had drawn unwelcome scrutiny over the year.
Hawkesby was first appointed acting governor following Orr’s departure, then was confirmed as governor on a six-month term while a search for a permanent replacement took place—a position Hawkesby has expressed interest in.
“It’s typical for the RBNZ to be ‘in the news’ for our policy decisions, publications and research,” Hawkesby said.
“But for too long this year the RBNZ has been ‘the news’, following the departure of the governor in March, the loss of our board chair in August, and everything in between.”
He said trust and confidence in economic institutions form the foundation of the financial system.
“That is why I want to assure you that we are resolutely focused on our mandate of delivering low and stable inflation in the medium term and a resilient and enabling financial system.”
Regarding monetary policy, Hawkesby said the economy seemed to slow down mid-year, increasing economic slack and allowing more room to reduce the Official Cash Rate (OCR).
“While our central projection for the OCR is to fall to around 2.50% by the end of the year, that could occur faster or slower depending on how the economic recovery evolves,” he said.
“Further data on the speed of New Zealand’s economic recovery will be what influences the future path of the OCR.”
The New Zealand Official Cash Rate (OCR) was set at 3% as of August 2025.