1 00:00:00,160 --> 00:00:03,120 Speaker 1: So, after scanning three hundred candidates, the Reserve Bank has 2 00:00:03,160 --> 00:00:07,440 Speaker 1: finally set on a New York governor. Doctor Anna Breman Bremen, 3 00:00:07,640 --> 00:00:11,119 Speaker 1: who has been deputy governor of Sweden's Reex Bank since 4 00:00:11,280 --> 00:00:13,960 Speaker 1: twenty nineteen, will step into the role from December. She's 5 00:00:14,000 --> 00:00:15,880 Speaker 1: the first woman to be named as governor in the 6 00:00:15,880 --> 00:00:19,400 Speaker 1: bank's ninety one year history. Have it listen to this 7 00:00:19,960 --> 00:00:25,000 Speaker 1: their ser bank should and it will remain a source 8 00:00:25,079 --> 00:00:28,360 Speaker 1: of strength and stability. 9 00:00:28,200 --> 00:00:29,800 Speaker 2: For the New Zealand economy. 10 00:00:31,080 --> 00:00:34,440 Speaker 1: And together with the board and with staff, we will 11 00:00:34,440 --> 00:00:39,360 Speaker 1: achieve this by focusing on our core mandate. Cameron Bakery, 12 00:00:39,440 --> 00:00:41,919 Speaker 1: independent economist, is with me. Now, thanks for your time 13 00:00:41,920 --> 00:00:43,320 Speaker 1: this morning, Cameron, Good morning. 14 00:00:43,880 --> 00:00:44,440 Speaker 2: Oh, good morning. 15 00:00:44,800 --> 00:00:46,840 Speaker 1: Right, what do we know about her? 16 00:00:48,000 --> 00:00:50,320 Speaker 2: Oh, she's got a pretty extensive CV, she's got central 17 00:00:50,360 --> 00:00:55,160 Speaker 2: bank experience, she's worked diversities. She clicks pretty well all 18 00:00:55,200 --> 00:00:58,640 Speaker 2: the boxes that you want of a credible central bank governs. 19 00:00:58,960 --> 00:01:00,160 Speaker 2: So let's go on. 20 00:01:00,760 --> 00:01:02,120 Speaker 1: Do you think this is the kind of job that 21 00:01:02,160 --> 00:01:02,720 Speaker 1: people want? 22 00:01:04,680 --> 00:01:07,880 Speaker 2: Well, if the media reports are correct, there are an 23 00:01:07,920 --> 00:01:12,080 Speaker 2: awful lot of cvs that were thrown in a few 24 00:01:12,080 --> 00:01:15,920 Speaker 2: pretty high credibly candidates in New Zealand had a crack 25 00:01:16,000 --> 00:01:18,280 Speaker 2: at the job as well and best person one. 26 00:01:18,480 --> 00:01:20,399 Speaker 1: What do you think her interest in taking the job 27 00:01:20,520 --> 00:01:21,720 Speaker 1: in New Zealanders? 28 00:01:22,760 --> 00:01:25,120 Speaker 2: I guess if you have yes, she was repeated for 29 00:01:25,200 --> 00:01:29,880 Speaker 2: your depitty head well next layer down of management at 30 00:01:29,920 --> 00:01:33,280 Speaker 2: the risk bank, so I think most people work for 31 00:01:33,360 --> 00:01:35,520 Speaker 2: those of the jobs. Ultimately, you wanted the top job 32 00:01:36,120 --> 00:01:38,040 Speaker 2: at a central bank. Obviously New Zealand's a way way 33 00:01:38,040 --> 00:01:40,440 Speaker 2: away from where she sort of was. But yeah, the 34 00:01:40,440 --> 00:01:45,520 Speaker 2: reserve banks had a pretty esteemed institution. Obviously they've got 35 00:01:45,600 --> 00:01:47,200 Speaker 2: knocked around in the past of the six months in 36 00:01:47,240 --> 00:01:49,360 Speaker 2: regard to what's going on, but if you go back, 37 00:01:49,640 --> 00:01:51,120 Speaker 2: they have a look at the Reserve Bank over the 38 00:01:51,160 --> 00:01:53,640 Speaker 2: past of the thirty to thirty five years. In that 39 00:01:53,760 --> 00:01:57,080 Speaker 2: year we've had low inflation, so they've been highly credible. 40 00:01:57,400 --> 00:01:59,080 Speaker 2: They've done a very good job overall. 41 00:01:59,320 --> 00:02:02,160 Speaker 1: Cameron, how bigger mess does she have to clean up here? 42 00:02:02,200 --> 00:02:03,440 Speaker 1: What should be her priorities? 43 00:02:05,320 --> 00:02:07,240 Speaker 2: Miss? I think is the wrong sort of word. But 44 00:02:07,320 --> 00:02:09,560 Speaker 2: if you look at obviously at the epy center of 45 00:02:09,720 --> 00:02:12,760 Speaker 2: the central Bank, they sort of got three board functions 46 00:02:13,080 --> 00:02:17,440 Speaker 2: price stability. We don't like high inflation, we're like low inflation. 47 00:02:18,639 --> 00:02:21,920 Speaker 2: We've learned that lesson very sevidly over the past a 48 00:02:21,960 --> 00:02:25,760 Speaker 2: few years, and she's come out and obviously fired a 49 00:02:25,760 --> 00:02:27,560 Speaker 2: couple of shots in regard that they're going to be 50 00:02:27,560 --> 00:02:31,160 Speaker 2: focused on inflation and the center of any central bank 51 00:02:31,360 --> 00:02:33,520 Speaker 2: is your credibility. So she's been straight out of the 52 00:02:33,520 --> 00:02:36,480 Speaker 2: blocks in regard to say these are what the focus 53 00:02:36,560 --> 00:02:39,600 Speaker 2: is going to be. She'll be focused on prudential supervision 54 00:02:39,760 --> 00:02:42,880 Speaker 2: and of course oversight of the pavement system. Now are 55 00:02:42,880 --> 00:02:45,840 Speaker 2: we going to see any groundbreaking changes in regard to 56 00:02:45,880 --> 00:02:48,040 Speaker 2: the operation of the Reserve Bank? I think the answer 57 00:02:48,080 --> 00:02:50,680 Speaker 2: is known. You know, the Reserve Bank, there's more than 58 00:02:50,720 --> 00:02:54,079 Speaker 2: the governor. The governor does not decide where interest rates are. 59 00:02:54,240 --> 00:02:56,320 Speaker 2: All the oco is going to be. It's decided buy 60 00:02:56,360 --> 00:03:00,440 Speaker 2: a committee. There's a very transparent process where we're going 61 00:03:00,480 --> 00:03:03,880 Speaker 2: to see some changes. The Reserve Bank is perhaps within culture. 62 00:03:04,200 --> 00:03:06,079 Speaker 2: So what's the space going forward? 63 00:03:06,360 --> 00:03:09,160 Speaker 1: Okay, you don't happen to know how well Sweden is 64 00:03:09,200 --> 00:03:12,359 Speaker 1: doing economically, I mean, what does this tell us anything 65 00:03:12,400 --> 00:03:14,440 Speaker 1: about the way she might approach things here? 66 00:03:16,240 --> 00:03:20,960 Speaker 2: Well, central bank, sweet the Central Bank had incredibly lower 67 00:03:20,960 --> 00:03:24,760 Speaker 2: interest rates and they were quite pleased to get back 68 00:03:24,800 --> 00:03:28,320 Speaker 2: into positive interest rate ciatry. But once again, she's going 69 00:03:28,360 --> 00:03:31,640 Speaker 2: to be laser focus on the key priorities because the 70 00:03:31,720 --> 00:03:35,600 Speaker 2: eb center of any central bank is credibility, and that's 71 00:03:35,640 --> 00:03:40,000 Speaker 2: credibility in the framework, that's credibility in the governor. It's 72 00:03:40,080 --> 00:03:43,080 Speaker 2: credibility in the governance. And when you lose a governor 73 00:03:43,200 --> 00:03:45,720 Speaker 2: and you lose a cheer within six months, you're going 74 00:03:45,720 --> 00:03:48,600 Speaker 2: to take a bit of a reputational hat. So the 75 00:03:48,640 --> 00:03:51,920 Speaker 2: Reserve Bank needs to address some of those reputational aspects 76 00:03:51,920 --> 00:03:54,080 Speaker 2: and I think it'll be ye not too fanom the 77 00:03:54,080 --> 00:03:57,480 Speaker 2: word the term because the government gets on throwing and back. 78 00:03:57,560 --> 00:03:59,000 Speaker 2: I think it's going to be getting back to good 79 00:03:59,000 --> 00:03:59,960 Speaker 2: old fashioned basics. 80 00:04:00,280 --> 00:04:03,320 Speaker 1: Thank you, yeah, Cameron Bekery. Always appreciate your thoughts. Thanks 81 00:04:03,360 --> 00:04:06,440 Speaker 1: so much for your time. For more from Early Edition 82 00:04:06,520 --> 00:04:09,400 Speaker 1: with Ryan Bridge, listen live to News Talks it'd be 83 00:04:09,520 --> 00:04:13,280 Speaker 1: from five am weekdays, or follow the podcast on iHeartRadio.