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Grimes new chair at RBNZ

Thursday, September 18th 2003, 2:37PM
Arthur Grimes has been elected chairman at the Reserve Bank of New Zealand.
This follows the recent passage of the Reserve Bank of New Zealand Amendment Act 2003 which requires that the Bank's chair be a non-executive director. Previously the Governor chaired the board.
The board also elected Alison Paterson as the board's deputy chair.
The board's primary function is to monitor the performance of the Governor and the Bank, on behalf of the Minister of Finance. At the time of the Independent Review of the Operation of Monetary Policy it was recognised that, given the Board's role, having the Governor as chair potentially created a conflict of interest. The 2003 Amendment Act did not alter the Reserve Bank's operational independence.

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