Wheeler new Reserve Bank governor

Finance Minister Bill English has announced he intends to appoint Graeme Wheeler as successor to Allan Bollard as governor of the Reserve Bank:

Mr Wheeler will be governor-designate until a new policy targets agreement is finalised in the next few months. This is  required before a new governor is appointed.

“Mr Wheeler’s  extensive experience makes him a highly respected figure in world  financial markets and within New Zealand,” Mr English says. “We were  fortunate to have someone of his calibre available for this important  role.”

From 1997 to 2010, Mr Wheeler was employed by the World  Bank. His most recent roles there included managing director operations  (2006-2010), and vice-president and treasurer (2001-2006). Previously,  he was at the New Zealand Treasury as deputy secretary and treasurer of  the Debt Management Office.

Mr Wheeler, a New Zealander, currently lives in the United States and runs his own advisory business.

As required under the Reserve Bank Act 1989, the Reserve Bank board of  directors recommended Mr Wheeler’s appointment to Mr English, after an  extensive recruitment process domestically and internationally.

“Given his experience and standing, combined with his technical and leadership qualities, the board considered that he has all the qualities required  to become governor and chief executive of the Reserve Bank,” Mr English  says.

He does not envisage any major changes to the policy targets agreement.

“I consider that the current PTA has served New Zealand well and there are benefits in maintaining consistency in the PTA.

“However, the global financial crisis has focused some attention on monetary  policy frameworks, and I want to ensure that the PTA continues to  reflect best international practice.”

Mr English also paid tribute to Dr Bollard for his leadership at the Reserve Bank over the past 10 years.

“He helped steer the New Zealand financial system through the biggest  global crisis in several generations. At the same time, he ensured that  this country continued to enjoy one of the most stable inflation  environments in the world.”

People with short memories might not understand how damaging high inflation is.

Those of  us who struggled to keep our businesses afloat in the face of soaring inflation and interest rates in the 1980s appreciate the determination of successive Reserve Bank governors and governments to ensure that doesn’t happen again.