Reserve Bank governor Adrian Orr has resigned from his position, effective 31 March – nearly three years before the scheduled end of his term.
Orr has taken immediate leave and will not return to work prior to his official departure date, according to a statement issued on Wednesday.
Stuff reported that deputy governor Christian Hawkesby has been appointed as acting governor, effective immediately.
The announcement has prompted questions about the reasons behind Orr's unexpected resignation.
During a press conference on Wednesday evening, Reserve Bank board chairman Neil Quigley attributed Orr's decision to "personal reasons" but did not elaborate further.
Despite persistent questioning from reporters, Finance Minister Nicola Willis and other government officials declined to provide additional explanations.
According to Stuff, Orr was due to deliver a keynote address at a Reserve Bank conference on Thursday, an event featuring central bankers from around the world. He had previously described the gathering as "two days of cut and thrust excitement".
Quigley said that Orr believed it would be more appropriate not to attend the conference following his resignation.
The Reserve Bank operates independently from the government but relies on public funding. Reports suggest there may have been disagreements between Orr and government officials regarding policy and funding matters.
Quigley acknowledged that the bank and the government were working through "some policy issues, some funding issues" but emphasised that there had been no conduct or performance concerns leading to Orr's departure.
Willis confirmed she had been aware of discussions regarding Orr's future over "the past few days". However, she refrained from characterising the reasons behind his resignation, stating that it was "for him to characterise".
Prime Minister Christopher Luxon said he was only informed of the decision on Wednesday and described his working relationship with Orr as "constructive".
Orr was first appointed as Reserve Bank governor in 2018 and was re-appointed in 2023 for a second five-year term, which was set to run until 2028. The process for appointing a Reserve Bank governor requires the finance minister to consult with all political parties and seek the board's recommendation.
Removing a governor is legally complex, requiring formal advice from the Reserve Bank board and the approval of the governor-general on the recommendation of both the attorney general and the minister of finance.
In a statement, Quigley acknowledged Orr's service, describing him as having shown "resilience and fidelity to the Bank". Orr said that he was leaving the position with consumer price inflation at target and the economy in a cyclical recovery following COVID-related disruption. He also said that "there is much work left to do".
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