Reserve Bank appoints two new members to interest rate-setting body

The committee, responsible for setting the official cash rate, welcomes former Electricity Authority chief executive Carl Hansen and University of Auckland macroeconomics professor Prasanna Gai. Hansen will assume his role in April, while Gai will join in July.

Hansen, an economist and executive director at Capital Strategic Advisors, brings a wealth of experience from his advisory roles at Meridian Energy. He replaces outgoing member Peter Harris and will serve a three-year term.

Gai, head of several departments at the University of Auckland and a board member of the Financial Markets Authority, steps in for Caroline Saunders. He will serve a four-year term.

Finance Minister Nicola Willis emphasized measures to prevent conflicts of interest, stating that Capital Strategic Advisors would refrain from serving financial sector clients while Hansen is on the committee. Additionally, Hansen will abstain from discussions involving Meridian Energy's fixed-interest funding arrangements.

Neil Quigley, chair of the Reserve Bank board, praised both appointees for their extensive backgrounds. Hansen's prior experience at the Reserve Bank and Gai's tenure at central banks abroad, including the Bank of England and the Bank of Canada, contribute valuable perspectives to committee discussions.