Radio New Zealand - Te Reo Irirangi o Aotearoa

New Reserve Bank head named

Updated at 6:49 am on 27 June 2012

Graeme Wheeler has been named as the Reserve Bank's next Governor.

Mr Wheeler worked at the World Bank from 1997-2010, and before that was deputy secretary of the New Zealand Treasury and the Treasurer of New Zealand's Debt Management Office.

More recently, he has worked in the United States as a business advisor.

The appointment was made by Finance Minister Bill English on the recommendation of the Reserve Bank Board.

Mr English says Mr Wheeler's experience, as well as his technical and leadership skills, mean he has all the qualities for the governor's job.

Graeme Wheeler edges out current deputy governor Grant Spencer who had been considered a front-runner for the job.

Mr Spencer has been instrumental in developing the central bank's response to the global financial crisis, including new rules to shore up the banking system.

BNZ head of research Stephen Toplis says there were a number of candidates, many of whom had strong qualifications.

"Clearly Graeme Wheeler also has fantastic qualifications, in particular his role with the World Bank, (which) put him in a very, very good position to lead our own central bank."

Mr Wheeler will replace Dr Alan Bollard who steps down in September after 10 years in the role.

World bank role 'good fit'

BNZ's head of research Stephen Toplis says there was strong competition for the top job from candidates with very good qualifications.

"Clearly Graeme Wheeler also has fantastic qualifications in particular his role with the World Bank put him in a very good position to lead our own central bank going forward."

Listen to Stephen Toplis on Checkpoint

Minister does not envisage PTA change

Bill English says he does not envisage any major changes to the Policy Targets Agreement with the Reserve Bank as a result of the change of governors.

Mr English says it has been ten years since the agreement, which sets out the bank's inflation target, and the tools it uses to achieve it, was last negotiated.

"There has been a lot change in the world since then, while we are on the one hand very keen for continuity so there's no uncertainty about how the Reserve Bank will operate its monetary policy, we also want to ensure that if there are obvious lessons to be learnt that could impact on the PTA then we'll take those into account."

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