New members appointed to Reserve Bank Monetary Policy Committee

The Monetary Policy Committee (MPC) is the independent decision-making body that sets the Official Cash Rate which determines interest rates.

Economists Carl Hansen and Professor Prasanna Gai have been appointed to the Reserve Bank Monetary Policy Committee, Finance Minister Nicola Willis announced today.

The Monetary Policy Committee (MPC) is the independent decision-making body that sets the Official Cash Rate which determines interest rates. 

Carl Hansen, the executive director of Capital Strategic Advisors, replaces Peter Harris who retires from the MPC at the end of March. 

Professor Gai, the Professor of Macroeconomics at the University of Auckland and Head of the Departments of Economics, Accounting & Finance, and Property, replaces Caroline Saunders who is retiring at the end of June. 

Nicola Willis says Carl Hansen and Professor Gai are both highly-qualified and have been appointed on the recommendation of the Reserve Bank’s board on the basis of their professional knowledge, skills and experience, including in the areas of economics and monetary policy.

In order to avoid the potential for any perceived or actual conflicts of interest, Capital Strategic Advisors will not undertake any work for financial sector clients while Carl Hansen is a member of the MPC. As Carl Hansen is also an advisor to Meridian Energy, he will not participate in any discussion relating to Meridian Energy’s fixed-interest funding arrangements.    

The Finance Minister thanked Peter Harris and Caroline Saunders for their service to the MPC. 

Carl Hansen has been appointed for a three-year term; Professor Gai has been appointed for a four-year term.

(With Inputs from New Zealand Government Press Release)