Finance Minister Bill English has congratulated the new chair of the Reserve Bank's board of directors Professor Neil Quigley.

Professor Quigley has been elected unanimously by his fellow directors, replacing Dr Rod Carr who is standing down after three years as chair. Economist Kerrin Vautier has been appointed as deputy chair.

'Professor Quigley, the Vice-Chancellor of Waikato University, has had a distinguished academic and consulting career and has served on the board since 2010. I look forward to him continuing to serve the bank and the public.”

Mr English thanked Dr Carr for his service and leadership, first between 1998 and 2003 as deputy governor and then acting governor of the bank and, since 2012, as a director on the board.

'Dr Carr has successfully led the board through a challenging period during which the bank's ambit has widened to include the macroprudential framework and active supervision of the banking and insurance industries.”

Bank directors are appointed by the finance minister for five-year renewable terms, and elect their chair from among their number for one-year terms. The chair appoints a deputy chair for a one-year term.

The board's primary function is to monitor the performance of the governor and the bank on behalf of the finance minister. It is responsible for assessing whether the quarterly Monetary Policy Statements are consistent with the Policy Targets Agreement between the minister and the bank, and it monitors the bank's six-monthly Financial Stability Reports.

SOURCE: Office of Bill English