Reserve Bank's top job could be up for grabs

CRAIG SIMCOX/Fairfax NZ

MONEY MAN: After nearly a decade in charge of monetary policy, Alan Bollard is expected to announce soon that he will step down.

Alan Bollard is expected to step down later this year, with reports that an announcement is imminent.

In September Bollard will reach the end of his second five-year term.

In recent days speculation has been mounting that he will soon announce that he will not seek a third term.

It was reported yesterday that an announcement was expected within days, but economists spoken to predicted an announcement around April, leaving about five months to appoint a replacement.

Reserve Bank spokesman Mike Hannah declined to comment.

A spokesman for Finance Minister Bill English said English had no comment, referring questions to Bollard.

A leading New Zealand bank economist said there had been speculation in the market for some time about when Bollard would announce his departure, and who might replace him.

There was "no shortage" of potential candidates for governor, the economist said, the most likely being deputy governor Grant Spencer or assistant governor John McDermott.

Rod Carr, who previously served as deputy to former governor Don Brash, and for several months was acting governor, was also a possibility.

Westpac chief economist Dominick Stephens predicted this week that September was likely to bring a new governor.

"He's either going to renew for another five years, or he's going to step down, and I suspect he'll be stepping down."

The governor of the Reserve Bank of New Zealand is the one person who ultimately decides on official cash rate movements, meaning a new head could signal a different approach to interest-rate settings.

- © Fairfax NZ News