Source: Radio New Zealand
https://players.brightcove.net/6093072280001/default_default/index.html?videoId=6387923407112
The Reserve Bank governor Anna Breman shouldn’t have signed a letter of support for US counterpart Jerome Powell without first consulting the Ministry of Foreign Affairs, the Finance Minister says.
Nicola Willis made the comment to media after Prime Minister Christopher Luxon was asked about Foreign Minister Winston Peter’s stinging remark that the governor should “stay in her New Zealand lane”.
Breman was one of a number of international central bankers who signed the letter supporting the US Federal Reserve head last week.
Powell has been pushing back to maintain the Federal Reserve’s independence after being served criminal charges by the US Justice Department.
Willis said she spoke to Breman the day after she signed the letter and asked why the governor had not informed her earlier.
“She put to me that she had been reluctant to contact me at 3am in the morning. I said to her ‘Look I’m available any time’ and that’s what New Zealanders expect of me.”
Willis said she made it clear to Breman that if she’d contacted her boss it would have given the governor an opportunity to get a range of perspectives before signing the letter.
“How that would have borne on her final decision I don’t know. I wouldn’t speculate.”
Asked if Breman made the wrong decision in supporting Powell, Willis said she wouldn’t speculate but “it would have been appropriate as the Minister of Foreign Affairs has said, for her take advice from across government”.
Willis said Breman should have let her know that she intended to sign the letter and had she done that, Willis would have advised her to take advice from the Foreign Affairs Ministry and speak with the Treasury Secretary about.
“She’s new in the job. I think she was being overly respectful of my private time.”
Asked if she agreed with the support, Willis deferred to Peters.
“…it’s appropriate that on issues of foreign affairs that she get advice from the officials who are experts in that area.”
Luxon, who was addressing media with Willis after his State of the Nation speech in Auckland on Monday, said they would only be speculating as to what decision Breman might have ended up taking had she sought that advice.
“What’s very important here is, as a government we don’t comment on the internal domestic affairs of other countries. That’s entirely appropriate. We don’t appreciate it when others do it to our own country.
“But as an independent Reserve Bank governor, we respect the independence of our Reserve Bank. It plays a critical role being independent on monetary policy in our own democracy. And we’ve got to respect her independence.”
Asked if Breman had apologised, Willis confirmed she didn’t.
“I didn’t think an apology was necessary. What is important is that in future she takes that learning of making sure she seeks advice and lets people know ahead of any international statements.”
Labour leader Chris Hipkins said he didn’t have a problem with the letter of support signed by Anna Breman. Samuel Rillstone
In a statement to RNZ last week the Reserve Bank said Breman had signed the statement because she and the RBNZ believed strongly in the independence of central banks.
“Dr Breman’s signature on the statement indicates the support of the Reserve Bank of New Zealand, which is statutorily independent from the New Zealand Government.”
Labour leader Chris Hipkins said he had no problem with the letter.
“I think it reflects the position that the New Zealand Government should be taking. The indepdendence of the (US) Federal Reserve and the threats against it are very concerning.”
Hipkins told media Peters was correct to say the Reserve Bank’s independence did not extend to foreign policy.
“Having said that, I think the Reserve Bank governor is entitled to express her view on international developments.”
He said the government could have been more visible on international developments such as the US attack on Venezuela, and its threats to take Greenland.
“I think the New Zealand government could have been more visible and more principled on all of those issues. Standing up for international laws, international rules, is something New Zealand has taken very principled positions on in the past and we should continue to do so.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
