RBNZ insider given financial stability job
One of the economists tipped to become the next Reserve Bank governor has been promoted to be the central bank’s deputy chief executive.
Yesterday the Reserve Bank said Geoff Bascand, the former government statistician who is now head of operations, would become head of financial stability and deputy chief executive.
The promotion takes effect from September 27, when governor Graeme Wheeler will step down.
The appointment of a permanent replacement for Wheeler has been delayed for six months, because his term comes to an end just days after the general election.
The delay will give the next government time to set a new policy targets agreement under which the governor would operate for his or her term in the role.
Bascand has been tipped by economists and other market observers as the most likely internal candidate to become Reserve Bank governor.
He is a former chief executive of Statistics New Zealand, and has also previously worked at the Department of Labour, where he headed its research unit, as well as at the Treasury and the International Monetary Fund.
‘‘Geoff brings considerable leadership experience, economics and public policy background to the role,’’ Wheeler said in a statement.
‘‘Through his participation in the [central] bank’s governing committee, financial policy committees, and chairing of the bank’s assets and liabilities committee, Geoff is very familiar with the bank’s work programmes and policy issues in the area of financial stability.’’
Whoever becomes governor, it now seems almost inevitable that they will work under a different operating model than Wheeler.
Labour, the Green Party and NZ First have all indicated plans to change the Reserve Bank’s model, while the National-led Government recently commissioned a report on whether to make changes to the way interest rate decisions are made.