Reserve Bank's board looking for 'suitably qualified' candidates to join the central bank's Monetary Policy Committee

The Reserve Bank (RBNZ) is looking for two new external members for its Monetary Policy Committee (MPC).

The two will succeed Caroline Saunders and Peter Harris when their terms end on March 31 and June 30 next year, respectively.

Neil Quigley, Chairman of the RBNZ Board, says “suitably qualified" candidates will be interviewed later this year and assessed against the appointment criteria. The names of candidates recommended by the Board will then be provided to the Minister of Finance after October's election.

The RBNZ says applications will be assessed against various criteria including expertise in monetary policy and macroeconomics, including those carrying out ongoing research in these areas; and relevant professional knowledge, skills and experience in public policy and banking.  

"Applicants will require a strong understanding of conflicts of interest, the sensitivity associated with 'inside knowledge' of monetary policy decisions, and the constraints on other activities that are necessarily associated with membership of the MPC," Quigley says.

“The final appointment decisions and timing is up to the Minister, but we expect appointments to be announced by early 2024. After the two new MPC members are inducted, they will officially begin their appointments on 1 April or 1 July 2024, respectively." 

External MPC members are appointed for a term of up to four years and can be reappointed for one further term, also of up to four years.

Since April 2019 the MPC has been responsible for maintaining a stable general level of prices over the medium term and supporting maximum sustainable employment, the RBNZ's monetary policy remit.

The MPC is made up of four internal RBNZ members and three external members. Monetary policy decisions, such as setting the Official Cash Rate (OCR), are made by the seven members of the committee. Prior to the MPC's establishment the RBNZ Governor was solely responsible for setting the OCR.

Saunders, who has a PhD in agricultural economics, is currently Professor of International Trade and the Environment and Director at Lincoln University's Agribusiness and Economics Research Unit. She's also a director on Landcare Research NZ's board, and sits on the Biosecurity Ministerial Advisory Committee.

Harris is an economist with extensive experience in the trade union movement, including a decade as Council of Trade Union Economist. He's currently an economic consultant, and has been a member of the Electricity Commission and an associate member of the Commerce Commission. He was Economic Advisor to Minister of Finance Michael Cullen from 1999 to 2002.

The third external member of the MPC is Bob Buckle, Professor Emeritus at Victoria University of Wellington. 

MPC appointments are made by the Minister of Finance, on the recommendation of the RBNZ Board.