By James Glynn
SYDNEY--Two new appointees are set to join the Reserve Bank of New Zealand's interest-rate-setting monetary policy committee at a time when the economy remains stubbornly in recession and expectations about coming interest-rate cuts are on the rise.
New Zealand Finance Minister Nicola Willis said Thursday that economist Carl Hansen and academic Prasanna Gai will fill the seats vacated by outgoing MPC members Peter Harris and Caroline Saunders.
Hansen, who will commence a three-year term with the MPC from Monday, is an economist and executive director of Capital Strategic Advisors, an independent consultancy based in Wellington. He has held several leadership roles, including chief executive of the NZ Electricity Authority.
Gai is a professor of macroeconomics at the University of Auckland and head of the economics, accounting and finance, and property departments. He will join the MPC on July 1.
The new MPC members will confront a challenging outlook, with the economy confirmed to be back in recession last week.
The farm-rich economy has contracted for four of the past five quarters.
"We are delighted to welcome Carl and Prasanna to the MPC. They were both highly qualified candidates with the appropriate knowledge, skills and experience to join the MPC and assist in its decision-making," RBNZ board chair Neil Quigley said in a statement.
"Their respective business experience at a high level and research expertise on macroeconomics and monetary policy will add fresh perspectives to Committee discussions. Both have also worked at central banks previously during their careers," Quigley said.
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
03-28-24 0119ET
