Reserve Bank of New Zealand (RBNZ) Chairman Neil Quigley has resigned with immediate effect, Finance Minister Nicola Willis said on Friday, citing the fallout over the handling of the sudden resignation of the central bank's governor earlier this year.
Quigley's departure follows months of speculation, as pressure mounted on him after the surprise resignation of former governor Adrian Orr in March due to disagreements over proposed cuts to the RBNZ's budget.
"Mr Quigley has decided that having overseen a number of key workstreams for the bank, now is the appropriate time for him to hand over to a new chair," Willis said in a statement.
Since Orr's departure, Quigley has been facing media questions and criticism over the handling of the situation and the bank's lack of transparency.
In an interview with state-owned Radio New Zealand Willis said Quigley tendered his resignation after a discussion about this criticism.
"My concern was that the bank's reputation was being impacted. He agreed with me that, that was a serious matter," Willis said.
"If he had not offered his resignation, I would have asked him for it," she said.
Quigley had said Orr's sudden departure was a personal decision, but official documents from the bank released in June showed the funding cuts caused distress to Orr and that the impasse risked damaging the working relationship, prompting him to resign.
The government announced in April that RBNZ's operating budget would be cut by roughly 25% in the coming fiscal year and be set at NZ$150 million ($88.07 million) for each of the next five years.
In response, RBNZ said it was planning to trim roughly one-fifth of its workforce to save costs. The RBNZ has grown its workforce to 660 employees, an increase of more than 2-1/2 times from 255 in 2018.
Willis said Deputy Chair Rodger Finlay would exercise the functions of chair until an appointment is made and Quigley's vacancy on the board would be filled in due course.
Quigley spent 15 years as a board member of the central bank and nine as chair. He was re-appointed to the role in 2024 for a further two-year term.
($1 = 1.7033 New Zealand dollars)
