New Zealand central bank’s Governor Adrian Orr will step down at the end of this month after seven years of leading the bank, according to an official statement.

Deputy Governor Christian Hawkesby will be acting governor until March 31, as well as chair the Monetary Policy Committee. New Zealand’s minister of finance will appoint a temporary governor from April 1 for a period of up to six months.

“Over the last seven years we’ve significantly built our capability and capacity so we can respond to an increasing complex and challenging global environment,” Orr said in a statement.

“We’ve made considerable progress in our approach to monetary and financial policy, alongside driving much-needed maturity uplifts in our balance sheet capital, digital, data and technology.”

The country grappled with a recession in its third quarter last year. The RBNZ last cut its rate by 50 basis points to 3.75% in February.

New Zealand has also been plagued with high unemployment figures that have seen foreigners leave the country in droves.

In the June quarter 2022, New Zealand’s annual inflation rate hit 7.3%, its highest level in over three decades. The country’s inflation has since eased, offering the central bank room to cut rates. New Zealand reported headline inflation rate of 2.2% in the quarter ended December 2024.

Finance Minister Nicola Willis acknowledged Orr’s resignation. “I wish him well for the future,” Willis said, and also welcoming deputy governor Hawkesby.

The New Zealand dollar strengthened to trade at 0.565 against the greenback.