RBNZ’s new Swedish boss joins bank shaken by politics, says ‘kia ora’
Anna Breman Becomes First Woman and First Foreigner to Lead RBNZ
Swedish economist Anna Breman has been chosen as the new Governor of the Reserve Bank of New Zealand (RBNZ). She will start her five-year term on December 1. Since it was founded in 1934, it’s the first time a non-native, especially a woman, has led the bank.
At her first press event in Wellington, Breman greeted the country with “kia ora,” a Māori word meaning “hello” or “be well.” It was a respectful nod to New Zealand’s culture.
“The Reserve Bank should and it will remain a source of strength and stability for the New Zealand economy,” Breman said. “Together with the board and with staff, we will achieve this by focusing on our core mandate.”
Adrian Orr’s Resignation Left the Bank in Trouble
Breman takes over after a messy period. It’s right after the resignation of Former Governor Adrian Orr in March 2025. Orr’s disagreements with the government were over money and decision-making. His exit led to more resignations, including the Board Chair, and left the bank in a tough spot.
Acting Governor Christian Hawkesby is filling in until Breman starts. He said:
“I am fully committed to supporting Anna and leading the RBNZ through this remaining period, including completing our organisational changes, concluding the Capital Review of the deposit-taking sector, chairing the MPC, delivering the Financial Stability Report, leading our remaining parliamentary hearings, and supporting the morale of our staff through a period of significant change.”
Economy Is Weak, Interest Rates Are Falling
New Zealand’s economy shrank more than expected in the second quarter of 2025. To help, the RBNZ has already cut interest rates by 2.5% since mid-2024. More cuts are likely before Breman officially starts.
The New Zealand dollar stayed steady at 58.63 US cents. Two-year bond yields were at 2.76%.
“Everyone will be busy AI’ing, is she a dove or hawk, and will get mixed answers,” said Imre Speizer, strategist at Westpac. “The main point is she starts after the October and November meetings, so the easing may be done before she starts.”
Breman Chosen After Global Search That Brings Experience and Respect
Breman was picked from over 300 candidates in a worldwide search. She has a PhD in Economics and has worked at Sweden’s Ministry of Finance, the World Bank, and, most recently, as Deputy Governor of Sweden’s central bank.
“Dr Breman comes to New Zealand with an impressive blend of technical skills and organisational leadership experience,” said Finance Minister Nicola Willis. “While gender was not a consideration, it certainly makes a difference if young women and girls can see that there is no office that cannot be occupied by a woman.”
Deputy Chair Rodger Finlay added:
“Anna’s experience spans central banking, academia, and financial markets. She has strong technical knowledge within monetary policy, financial stability, and payments systems after several years at the Executive Board at the Riksbank and extensive international experience.”
Beyond Breman’s Background, Deeper Problems at the Bank
- Loss of Independence: Public clashes with the government raised doubts about the bank’s autonomy. Breman must restore credibility.
- Low Staff Morale: Resignations and internal shifts have shaken confidence. Breman faces a fractured workforce.
- Cultural Disconnect: A “kia ora” greeting signals intent, but deeper Māori engagement is still missing.
- Global Experience: Her Swedish background brings insight, but New Zealand’s challenges demand local adaptation..
Breman’s Focus Is to Keep Inflation Low and avoid Politics
Breman didn’t comment on current interest rates, but she made her priorities clear, stating that “Under my leadership, the RBNZ will remain laser-focused on low and stable inflation.”
Her appointment is a big moment for the RBNZ. She brings experience, calm leadership, and a fresh perspective. Whether she can fix the bank’s problems and guide New Zealand through tough times will be watched closely.
