Reserve bank governor stepping down

Reserve Bank Governor Alan Bollard will step down from the role in September.

In a statement yesterday, Dr Bollard announced he would not be seeking another term when his current term ended on September 25. Appointed in September 2002, he is in his second five-year term.

He would be "fully focused" in his remaining eight months on the serious economic and financial challenges facing New Zealand.

"As I noted last week, the bank is ready to respond to ongoing developments overseas, especially in Europe, the US and China, as well as domestically, particularly the Canterbury earthquakes.

"In addition, the bank's expanded prudential regulatory responsibilities mean we will continue to introduce new prudential requirements this year, especially in the insurance and non-bank sectors," he said.

Last week, Dr Bollard kept the official cash rate on hold at a record low 2.5%, saying it remained prudent to do that, given ongoing uncertainty around global conditions and the moderate pace of domestic demand.

Reserve Bank board chairman Dr Arthur Grimes said the board would search both in New Zealand and overseas to identify a successor to Dr Bollard.

The governor is appointed by the Minister of Finance, on the recommendation of the board.

Dr Bollard's previous positions included secretary to the Treasury between 1998 and 2002, chairman of the New Zealand Commerce Commission between 1994 and 1998 and director of the New Zealand Institute of Economic Research between 1987 and 1994.

He has also worked as an economist in a variety of positions, both in the United Kingdom and in the Pacific.

He has written various books on the New Zealand economy, most recently one on the global financial crisis, called Crisis, with Sarah Gaitanos.

He has produced a computer simulation game called Oikonomos, where one plays at being the minister of finance, and has helped rebuild the Phillips hydraulic economic simulation model "the Moniac".