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Winston Peters Tells RBNZ Governor to 'Stay in Her New Zealand Lane' After Backing Powell

The Reserve Bank said Anna Breman joined a global statement to affirm central bank independence, stressing the bank’s statutory autonomy from the government.

Overview

  • The foreign minister publicly rebuked Anna Breman for signing a letter supporting U.S. Federal Reserve Chair Jerome Powell, saying the RBNZ should avoid U.S. domestic politics.
  • Peters said the Ministry of Foreign Affairs and Trade would have advised against signing the statement, noting Breman did not seek that advice.
  • Breman was among central bank chiefs who declared “full solidarity” with Powell and said central bank independence is essential for price and financial stability.
  • An RBNZ spokesperson said Breman signed because she believes strongly in central bank independence and emphasized the bank’s statutory independence from the New Zealand government.
  • Coverage of the solidarity letter followed reports that the U.S. administration threatened Powell with a criminal indictment over a renovations probe, which he called a pretext; the RBNZ declined to comment on Peters’ post.