Reserve Bank Governor to Serve Further Term

Reserve Bank Governor, Dr Donald Brash, is to be reappointed for a third five-year term, when his current term expires on 31 August 1998, Treasurer Winston Peters announced today.

The Reserve Bank of New Zealand Act 1989 (as amended by the Treasurer (Statutory References) Act 1997) provides for the Governor to be appointed by the Treasurer on the recommendation of the Board of Directors of the Bank.

'When I met the non-executive directors of the Reserve Bank on 16 October, they recommended that Dr Brash be re-appointed to the position of Governor for a five year term commencing 1 September 1998 and that this be announced as soon as possible,' said Mr Peters. 'Within days of receiving this recommendation and before the Prime Minister departed for CHOGM, I advised the Prime Minister and the Minister of Finance of my intention to reappoint Dr Brash and obtained their concurrence. On 11 November I submitted a paper to Cabinet recommending that it note my intention to reappoint Dr Brash.'

'It is important that my intention to reappoint Dr Brash as Governor be signalled well in advance of the expiry of his current term to avoid there being any uncertainty in the markets on that account,' said Mr Peters. 'I am therefore making this announcement following Cabinet's agreement today.'

Mr Peters noted that since the Coalition Government took office, both the rate of inflation and interest rates were down significantly.