New Zealand central bank governor announces surprise resignation

Reserve Bank of New Zealand Governor Adrian Orr has resigned in a surprise move, with his role finishing on March 31, three years before his current term ends.

In a statement released on Wednesday, Orr reflected on his tenure: “I leave the role with consumer price inflation at target, and an economy in a cyclical recovery following the long period of COVID-related disruption. The financial system remains sound.”

Orr was recently reappointed for a five-year term effective March 27, 2023. Deputy Governor Christian Hawkesby will serve as acting governor until March 31, with the central bank stating that “from April 1, New Zealand’s finance minister, on recommendation from the RBNZ Board, will appoint a temporary governor for up to six months.” Hawkesby will also chair the monetary policy committee during this period.

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Finance Minister Nicola Willis acknowledged Orr’s resignation and wished him well for his future. The announcement had minimal market impact, with the New Zealand dollar extending earlier losses and trading down 0.25% to $0.5651.

The resignation comes at a critical time for New Zealand’s economy, which is experiencing its worst economic downturn since 1991 outside of the pandemic. Unemployment has reached a more than four-year high, with the number of workers seeing the largest annual decline since 2009. Companies are going bust at the fastest pace in over a decade.

Originally appointed by the Labor-led government in 2018, Orr came to the role with significant experience, having previously served as the Reserve Bank’s deputy governor for four years and leading the country’s sovereign wealth fund.