‘New chapter’ promised as Sweden’s Anna Breman named Reserve Bank governor
Wednesday, 24 September 2025
Incoming Reserve Bank governor Dr Anna Breman has staked out a “laser focus” on keeping inflation low without hurting the economy, as she prepares to take the helm amid a weak economy and a Government under political pressure to deliver growth.
Finance Minister Nicola Willis announced Breman’s appointment on Wednesday, nearly six months after Adrian Orr abruptly left his position as Reserve Bank governor.
She framed it as a fresh start for the bank after a period of leadership turmoil which also saw board chair Neil Quigley resign over its handling of Orr’s resignation.
Breman, formerly the deputy governor of Sweden’s central bank, the Riksbank, will begin a five-year term on December 1. She was selected following a global search that considered 300 candidates. Eleven made formal applications, including three from New Zealand and seven international applicants.
Breman was chosen for her blend of technical expertise, organisational leadership, and experience in central banking, financial institutions, and government, Willis said.
“We are opening a new chapter today new chapter today, a new chapter in New Zealand’s history and a new chapter for Reserve Bank,” Willis said.
Breman, when she takes on the governor role, will chair the Monetary Policy Committee, which sets the Official Cash Rate seven times a year.
She highlighted the challenges central banks have faced in recent years, noting that inflation surged globally after the Covid-19 pandemic and Russia’s invasion of Ukraine. Breman said while inflation has moderated, price stability remains the Bank’s “primary mandate”. She repeatedly emphasised that low inflation is necessary to sustain strong growth and employment in the medium term.
Breman’s comments suggest a cautious approach to monetary policy, which could keep borrowing costs, including mortgages, elevated even as economic growth slows. That could translate to slower growth in the housing market, as higher rates reduce borrowing demand, affecting buyers and homeowners alike.
At the same time, she signalled a commitment to balancing inflation control with economic support, saying she aims to achieve low inflation “without hurting the economy too much”.
This is a politically sensitive issue as the Government faces scrutiny over economic growth. Stats NZ last week reported a 0.9% contraction in GDP for the June quarter. A second quarter of negative growth would signal the economy was shrinking and in a recession.
Breman said the Reserve Bank was an “excellent institution” with highly-skilled staff, adding New Zealand was a “good place to be” and that she had the best interest of the country, and the economy, as her primary goal as governor.
“I look forward to learning more, and I will make sure that as soon as I’m in the office, I get people that will teach me so they learn both more, both about the [te reo Māori] language, but about the cultural aspects,” she said.
Breman holds a PhD in Economics from the Stockholm School of Economics and has served as deputy governor at Sweden’s Riksbank since 2019. She has also held roles at Swedbank, the Swedish Ministry of Finance, and the World Bank.