Analysis: 1News Business Correspondent Jason Walls assesses the early months of Reserve Bank Governor Anna Breman's term in office helping steer the New Zealand economy.
Anna Breman was clear on two things when addressing New Zealand for the first time in September last year.
The first: She would be "laser focused" on inflation. Unfortunately for her, Donald Trump threw her a curve ball with his Iran war. The inflationary impact of that remains to be seen, but this week Breman suggested inflation could reach as high at 4.2% this quarter.
Ensuring that comes back down below 3% will be a major test.
The second thing she was clear about was ushering in a new era of transparency for the Reserve Bank.
On this, so far, she cannot be faulted.
She took the reins of the Central Bank after a period of major instability. Its former Governor, Adrian Orr, resigned halfway through his term with no explanation.
Watch Anna Breman interviewed on Q+A on Sunday at 9am on TVNZ 1 and on TVNZ+
It eventually emerged he had quit after a major disagreement over how much funding the Reserve Bank would receive from the Government. It was less than he had been expecting.
His boss, Chairman Neil Quigley, quit some months later after facing criticism over how the saga was handled. Finance Minister Nicola Willis said at the time: "If he had not offered his resignation, I would have asked him for it."
Throughout the whole process, extracting information from the Bank was like getting blood from a stone. Interviews were scarce and truth was hidden behind impenetrable layers of bureaucracy.
By the time Breman took over, the bank's reputation appeared to be at a near all-time low.
But, in the short four months she's been in charge, that tarnished reputation has been on a fast track toward recovery.
On transparency, she's nailed her brief.
Throughout Orr's tenure, and Graeme Wheeler before him, interviews were very rare.
Not for Breman.
Since taking over in December, she’s done 23 interviews with media from major players such as 1News and Newstalk ZB, to smaller outlets such as NBR and Interest.co.nz. She’s even sat down with financial blogs.
Meanwhile, Breman’s delivered major speeches across the country as well as fronting five press conferences.
When it became apparent the conflict in the Middle East was likely to have a material impact on New Zealand’s economy, she fronted to business leaders and reporters to ease concerns.
And, in a departure from precedence, she and her key officials now front for media after every single official cash rate decision. Previously, the Governor would front up once a quarter leaving a vacuum of information between media appearances.
Breman’s also been a lot more visible to the finance community - fronting regular briefings and fielding questions from economists and analysts alike. I'm told they like what they’ve seen so far.
But it’s easy to be open when things are going well. Her real transparency test will come if the wheels come off at the Bank. Will she continue to regularly front media, large and small? Or will she go to ground like her predecessors.
And she still has more work to do when it comes full transparency of the Reserve Bank’s decision-making process.
At the start of her tenure, she suggested she would look into making the votes of the members of the Monetary Policy Committee – that’s the board tasked with setting the official cash rate – public, so everyone can see which way they voted.
So far, who voted which way is still mostly shrouded in mystery.
Despite this, she’s made a damn good start in the job - even though she annoyed Foreign Minister Winston Peters over her support for the US's central bank's chair in his row with Donald Trump.
“A key component to build trust and credibility for the Reserve Bank is transparency and openness,” she said in her first press conference in September.
“We will strive for transparency and accountability and clear communication within all the work we do.”
So far, so good Madam Governor.
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